Q. What is the consequence of underestimating expenses in premium estimation?

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Q. Why is overestimating expenses also problematic in premium calculation?

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Q. How are expenses primarily classified in insurance?

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Q. What characterizes semi-variable expenses?

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Q. Why are the initial expenses for setting up an insurance company typically borne by the shareholders?

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Q. What makes estimating initial setup expenses for an insurance company challenging?

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Q. How are fixed expenses in insurance pricing defined?

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Q. What is the difference between marginal and non-marginal costs in insurance?

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Q. How do fixed expenses contribute to the profitability of an insurance company?

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Q. What makes distinguishing between marginal and fixed overheads subjective in insurance?

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Q. When are variable expenses typically incurred in insurance?

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Q. What are initial expenses in insurance also known as?

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Q. When are renewal expenses incurred in insurance?

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Q. When are termination expenses incurred in insurance?

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Q. How is the expense rate typically measured in insurance business?

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Q. Which expense assumption is typically represented as a percentage of the premium?

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Q. What is the primary driver of stamp duty expense in insurance?

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Q. Which type of expense is typically represented as an amount per policy?

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Q. Which expense assumption is typically represented as a percentage of the investment fund?

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Q. What factors are considered in choosing expense assumptions for insurance products?

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