Question

What components are considered in the calculation of the Operating Profit Ratio for a life insurance company?

a.

Premium deficiency only

b.

Expenses under profit and loss account only

c.

Both a and b

d.

Gross Direct premium written in India

Answer: (c).Both a and b Explanation:The calculation of the Operating Profit Ratio for a life insurance company considers both premium deficiency and expenses under the profit and loss account.

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Q. What components are considered in the calculation of the Operating Profit Ratio for a life insurance company?

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