Question

How is the Management Expense Ratio computed in non-life insurance companies?

a.

Management Expenses / Net Premium

b.

(Management Expenses + Net Premium) / Claims Paid Direct

c.

(Management Expenses - Net Premium) / Net Premium

d.

(Management Expenses - Net Premium) / (Commission Direct + Commission on Reinsurance Accepte

Posted under IC 89 Management Accounting

Answer: (a).Management Expenses / Net Premium Explanation:The Management Expense Ratio is computed as Management Expenses / Net Premium.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How is the Management Expense Ratio computed in non-life insurance companies?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the formula for calculating Net Incurred Claim in non-life insurance companies?

View solution

Q. What do Activity Ratios measure in financial management?

View solution

Q. What factors does the overall profitability in financial management depend on?

View solution

Q. How is the Stock Turnover Ratio calculated when opening and closing stock figures don't widely vary?

View solution

Q. In the insurance sector, what is considered for segment-wise Activity Analysis in terms of premium collection?

View solution

Q. What does Activity Analysis in the insurance sector include in respect of Benefits paid to policyholders?

View solution

Q. What is the primary focus of Solvency Ratio in financial management?

View solution

Q. What is the regulatory requirement related to maintaining the Required Solvency Margin in insurance companies?

View solution

Q. In the life insurance business, what is the typical ratio between shareholders' funds and policyholders' funds?

View solution

Q. How is the test of insolvency by the regulator more rigorous for life insurance business compared to non-life insurance business?

View solution

Q. What does Available Solvency Margin (ASM) represent in insurance business?

View solution

Q. Which form is used for the valuation of assets in the computation of Solvency Margin for insurers in India?

View solution

Q. In the determination of the amount of liabilities for insurers in India, which form is used for life insurance business?

View solution

Q. For general insurance business in India, which form is used for the determination of the amount of liabilities?

View solution

Q. Which statement is prepared for the determination of Solvency Margin for life insurance business in India?

View solution

Q. What specific requirement is for health business in the context of compliance in the computation of Solvency Margin for insurers in India?

View solution

Q. What is the formula for determining Solvency Margin (SM) in a non-life insurance company?

View solution

Q. How is Required Solvency Margin (RSM) calculated based on net premiums (RSM-1)?

View solution

Q. What does RSM-2 represent in the context of Solvency Analysis for a non-life insurance company?

View solution

Q. How is RSM-2 calculated?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? 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!

Professional Communication

Hone your communication skills with our Professional Communication category. Enhance...

Optical Communication

Explore the world of high-speed data transmission with our Optical Communication...

Total Quality Management

Enhance your understanding of quality management with our Total Quality Management...

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...

International Relations

Navigate the complex world of International Relations with our dedicated category....

Logical Reasoning

Enhance your logical thinking and decision-making abilities with our Logical...

IC 89 Management Accounting

Boost your preparation for the IC 89 Management Accounting exam with our extensive...