Question

What are initial expenses in insurance?

a.

Expenses incurred for claim settlements

b.

Expenses incurred to procure business, including fees for medical exams, lab reports, advertisements, underwriting, and administration costs

c.

Expenses incurred for policy renewals

d.

Expenses related to premium collection

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).Expenses incurred to procure business, including fees for medical exams, lab reports, advertisements, underwriting, and administration costs Explanation:Initial expenses in insurance refer to expenses incurred to procure business, including fees for medical exams, lab reports, advertisements, underwriting, and administration costs.

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Q. What are initial expenses in insurance?
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