Question

What does the ratio of Expenses of Management to total Premium Income measure for a life insurance company?

a.

Profitability of the company

b.

Efficiency in policy issuance

c.

Solvency analysis

d.

Percentage of expenses to total premium income

Answer: (d).Percentage of expenses to total premium income Explanation:The ratio of Expenses of Management to total Premium Income measures the percentage of expenses to total premium income for a life insurance company.

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Q. What does the ratio of Expenses of Management to total Premium Income measure for a life insurance company?

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