Question

How are claim expenses typically calculated in insurance?

a.

Claim expenses are fixed per policy expenses

b.

Claim expenses are calculated based on premiums

c.

Claim expenses are calculated based on the sum assured

d.

Claim expenses are usually related to the benefit payment and can be a percentage of the benefit amount or a fixed amount

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).Claim expenses are usually related to the benefit payment and can be a percentage of the benefit amount or a fixed amount Explanation:Claim expenses in insurance are usually related to the benefit payment and can be a percentage of the benefit amount or a fixed amount.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How are claim expenses typically calculated in insurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. What does pricing in insurance entail?

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. What is a profit criterion in insurance?

View solution

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

View solution

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

View solution

Q. What is the internal rate of return (IRR) in insurance?

View solution

Q. How is the net present value (NPV) expressed in terms of the premium income of insurance companies?

View solution

Q. What is a limitation of using the internal rate of return (IRR) in insurance?

View solution

Q. What does the discounted payback period represent in insurance decision making?

View solution

Q. How is the discounted payback period typically used in insurance decision making?

View solution
View All MCQs on IC 92 Actuarial Aspects of Product Development

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!

Irrigation Engineering

Master the science of Irrigation Engineering with our dedicated category. Explore...

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Biochemistry

Delve into the intricate world of Biochemistry with our Biochemistry category....

Avionics Engineering

Soar into the world of aviation technology with our Avionics Engineering category....

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Total Quality Management

Enhance your understanding of quality management with our Total Quality Management...