Question

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

a.

To maximize the insurer's expenses

b.

To minimize the insurer's profits

c.

To ensure there is no profit for the insurer

d.

To ensure there is profit for the insurer while maintaining optimal premiums

Answer: (d).To ensure there is profit for the insurer while maintaining optimal premiums Explanation:The primary goal of the cash flow method in determining premiums in insurance is to ensure there is profit for the insurer while maintaining optimal 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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