Question

What is the formula for determining commission payments in insurance?

a.

C = 0.01 r Px + (Dx+1 / Dx) x 0.01 r1 Px äx+1:n-1ך

b.

C = 0.01 r Px

c.

C = 0.01 r Ax + (Dx+1 / Dx) x 0.01 r1 Ax äx+1:n-1ך

d.

C = 0.01 r Ax

Answer: (a).C = 0.01 r Px + (Dx+1 / Dx) x 0.01 r1 Px äx+1:n-1ך Explanation:The formula for determining commission payments in insurance is C = 0.01 r Px + (Dx+1 / Dx) x 0.01 r1 Px äx+1:n-1ך.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What are initial expenses in insurance?

Q. How are renewal expenses calculated in insurance?

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

Q. What are claim expenses in insurance?

Q. How are claim expenses typically calculated in insurance?

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

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

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

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

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

Q. What is the primary purpose of profit testing in insurance pricing?

Q. What does pricing in insurance entail?

Q. How is the cost of reserves accounted for in insurance pricing?

Q. What is the purpose of considering the cost of capital in insurance pricing?

Q. What is the distinction between physically real cashflow and notional cashflow in insurance pricing?

Q. How is the establishment of reserves funded in a life insurance company?

Q. What role does investment income from supervisory reserves play in the profit flow of an insurance company?

Q. What is a profit criterion in insurance?

Q. How is the net cash flow stream of a contract defined?

Q. Which profit criterion is considered the best to use in insurance?

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!