Question

What are the main factors considered in calculating life insurance premiums?

a.

Mortality, persistency, interest rates, expenses, and commission

b.

Mortality, surrender charges, investment returns, overhead costs, and taxes

c.

Mortality, lapse rates, investment returns, administrative fees, and taxes

d.

Mortality, policyholder behavior, investment returns, underwriting costs, and taxes

Answer: (a).Mortality, persistency, interest rates, expenses, and commission Explanation:Life insurance premiums are primarily calculated based on factors such as mortality rates, policy persistency, interest rates, expenses incurred by the insurer, and commissions paid to agents.

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Q. What are the main factors considered in calculating life insurance premiums?

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