Q. An insurance company sells 1000 policies and it expects 5 claims. The total amount of claims is Rs. 2,50,000/-. If the period of cover is one year and if the company wants its total income to be equal to the total outgo, what premium should the company charge from each of those 1000 policyholders?

View solution

Q. What is the primary method of controlling mortality or morbidity risk in insurance?

View solution

Q. How is the credibility factor used in deriving mortality or morbidity assumptions?

View solution

Q. What is the importance of data quality in experience analysis?

View solution

Q. What is the main objective of experience analysis in insurance?

View solution

Q. What is the significance of adjusting standard table rates in insurance?

View solution

Q. What are the key factors considered in choosing mortality or morbidity rates?

View solution

Q. What does morbidity rate refer to?

View solution

Q. How is mortality rate defined?

View solution

Q. What is the primary purpose of mortality and morbidity rates in insurance?

View solution

Q. How does underwriting policy influence mortality or morbidity assumptions in pricing?

View solution

Q. What risk is associated with reinsurance arrangements?

View solution

Q. How does reinsurance help insurers manage risk?

View solution

Q. What are the two main types of underwriting in life insurance?

View solution

Q. What is the primary purpose of underwriting in the context of life insurance?

View solution

Q. What represents a difficult-to-quantify risk in mortality assumption setting?

View solution

Q. In an established insurance market, what factors contribute to low model and parameter risk?

View solution

Q. What are the main ways of controlling mortality risk in insurance?

View solution

Q. Which type of insurance product would typically have the maximum financial impact of mortality risk?

View solution

Q. What contributes to the "random fluctuations" risk in mortality assumption setting?

View solution