Question

How does a company's recent experience contribute to determining expense assumptions?

a.

It has no impact on expense assumptions

b.

It provides insight into different types of expenses incurred

c.

It determines the regulatory restrictions on expenditure

d.

It influences the choice of distribution channels

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).It provides insight into different types of expenses incurred Explanation:A company's recent experience helps in determining expense assumptions by providing insight into the different types of expenses incurred for the type of business concerned.

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Q. How does a company's recent experience contribute to determining expense assumptions?
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