Question

What is pure premium?

a.

Premium sufficiently big enough to pay for losses only

b.

Premium applicable to marginal members of the society

c.

Premium after loading for administrative costs

d.

Premium derived from the most recent loss experience period

Answer: (a).Premium sufficiently big enough to pay for losses only Explanation:The pure premium is the basic premium that is sufficient to cover expected losses. It does not include additional amounts for administrative costs, profits, or other expenses. It is essentially the cost of the insurance coverage needed to pay for expected claims or losses.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is pure premium?

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!