Q. What is the primary principle underlying the formula method of determining premiums?

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Q. What does äx represent in actuarial terms?

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Q. What is the formula for calculating Premium payable every year by a life aged x in a Whole life contract?

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Q. In a Term assurance contract, what does Px represent?

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Q. What is the formula for calculating Premium payable in a Pure endowment contract?

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Q. In an Endowment assurance contract, what does Px:nך represent?

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Q. What are some limitations of the formula method for determining premiums?

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Q. What are office premiums in insurance?

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Q. How is the Single Premium (SP) calculated for an Endowment assurance product considering office premiums?

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Q. What is the formula for determining commission payments in insurance?

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Q. What are initial expenses in insurance?

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Q. How are renewal expenses calculated in insurance?

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Q. What is the formula for determining the present value of initial expenses?

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Q. What are claim expenses in insurance?

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Q. How are claim expenses typically calculated in insurance?

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Q. How are claim expenses factored into the determination of premiums?

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Q. What is the primary goal of the cash flow method in determining premiums in insurance?

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Q. What are the stages involved in the cash flow method for determining premiums?

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Q. How is the net cash flow calculated in the cash flow method?

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Q. What is the purpose of conducting profit testing in the cash flow method?

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