Question
a.
It is less time-consuming and costly compared to the formula method
b.
It relies on unreliable data input, leading to unreliable output
c.
It allows for generalization of premium rates for all insurance products
d.
It does not require consideration of the term structure of interest rates
Posted under IC 92 Actuarial Aspects of Product Development
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Q. What is a limitation of the cash flow method in insurance pricing?
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