Q. How can two companies have very different premiums for the same guaranteed level of benefits in traditional participating products?

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Q. In innovative non-participating products, what is the focus of pricing?

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Q. What equation is typically used to determine the price of insurance products?

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Q. How is the determination of price typically approached in insurance products?

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Q. What is the primary focus when using the formula method for pricing insurance products?

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Q. Why is the formula method not suitable for pricing unit-linked products with diverse benefits?

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Q. What is the primary advantage of the cash flow method compared to the formula method for pricing insurance products?

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Q. Why has the cash flow method gained popularity in recent years?

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Q. How does the cash flow method differ from the formula method in terms of computational approach?

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Q. What does the "cost of benefits" component of premium calculation primarily include?

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Q. In addition to the pure premium, what else is included in the "cost of benefits" component for traditional insurance products?

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Q. How does the "cost of benefits" component differ for unit-linked products compared to traditional products?

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Q. What are procurement expenses primarily related to in insurance?

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Q. What are underwriting expenses associated with in insurance?

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Q. Which of the following is NOT typically covered under administrative expenses in insurance?

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Q. What is the primary consideration for a new insurer in estimating expenses while pricing insurance products?

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Q. What types of expenses are typically related to premium payments in insurance?

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Q. Which of the following is NOT a type of premium payment method?

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Q. What are examples of initial fixed expenses incurred by insurers?

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Q. Why are insurers often reluctant to sell small premium policies?

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