Q. What are the two known methods of determination of price in insurance?

View solution

Q. What is a limitation of the cash flow method in insurance pricing?

View solution

Q. What are some advantages of the cash flow method in insurance pricing?

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. What is a profit criterion in insurance?

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. What does pricing in insurance entail?

View solution

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

View solution

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

View solution

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

View solution