Question

What does the cost of benefit in insurance represent?

a.

The total premium paid by the policyholder

b.

The expenses incurred by the insurer

c.

The pure premium that covers only the amount of benefits

d.

The commission paid to the agents

Answer: (c).The pure premium that covers only the amount of benefits Explanation:The cost of benefit in insurance represents the pure premium that meets just the amount of benefits plus reserving cost.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does the cost of benefit in insurance represent?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What does the cost of expenses in insurance include?

Q. What are the types of premium payment?

Q. How is commission payment usually expressed in insurance?

Q. What influences the pricing of insurance products according to regulations?

Q. What factors do insurers consider while determining the optimum size of a policy?

Q. What do insurers consider while determining the expected volume of business?

Q. Pricing of insurance products is directly related to which of the below?

Q. Present value of premium is equal to which of the below?

Q. In pricing of insurance products, taxes are considered as an example of which of the following category of expenses?

Q. In which of the following cases would insurers insist on medical examination and reports?

Q. The creation of an image of trust and good market standing by the insurer depends upon which of the following factors?

Q. Medical expenses of a prospective insurance customer are borne by the insurers as

Q. For insurers who have completed 10 years since registration as an insurer, the commission payment on premium receivable in the first year shall not exceed

Q. Under which type of payment of premium, the number of premium payments is more than one but limited to two or more annual premiums?

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!