Question
a.
By calculating the benefits paid on the happening of events mentioned in the insurance contract.
b.
By setting prices that meet both the company's financial and marketing aspirations.
c.
By stipulating the payment schedule in the contract with regard to time and mode of payment.
d.
By calculating the amount to be paid for a stipulated benefit amount.
Posted under IC 92 Actuarial Aspects of Product Development
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. How are premiums typically determined in traditional insurance products?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
Q. In the context of unit-linked products, what role does pricing play?
View solution
Q. What aspect of pricing is emphasized in traditional insurance products?
View solution
Q. In unit-linked products, what primarily differentiates products between companies or within the same company?
View solution
Q. What aspect of pricing is crucial for traditional participating products?
View solution
Q. How can two companies have very different premiums for the same guaranteed level of benefits in traditional participating products?
View solution
Q. In innovative non-participating products, what is the focus of pricing?
View solution
Q. What equation is typically used to determine the price of insurance products?
View solution
Q. How is the determination of price typically approached in insurance products?
View solution
Q. What is the primary focus when using the formula method for pricing insurance products?
View solution
Q. Why is the formula method not suitable for pricing unit-linked products with diverse benefits?
View solution
Q. What is the primary advantage of the cash flow method compared to the formula method for pricing insurance products?
View solution
Q. Why has the cash flow method gained popularity in recent years?
View solution
Q. How does the cash flow method differ from the formula method in terms of computational approach?
View solution
Q. What does the "cost of benefits" component of premium calculation primarily include?
View solution
Q. In addition to the pure premium, what else is included in the "cost of benefits" component for traditional insurance products?
View solution
Q. How does the "cost of benefits" component differ for unit-linked products compared to traditional products?
View solution
Q. What are procurement expenses primarily related to in insurance?
View solution
Q. What are underwriting expenses associated with in insurance?
View solution
Q. Which of the following is NOT typically covered under administrative expenses in insurance?
View solution
Q. What is the primary consideration for a new insurer in estimating expenses while pricing insurance products?
View solution
Recommended Subjects
Are you eager to expand your knowledge beyond IC 92 Actuarial Aspects of Product Development? 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!
