Question

How are expenses typically covered in insurance premiums?

a.

They are deducted from the investment returns

b.

They are ignored in premium calculations

c.

They are loaded within the quoted premium rate

d.

They are explicitly charged as a separate fee to policyholders

Answer: (c).They are loaded within the quoted premium rate Explanation:Expenses in insurance premiums are typically loaded within the quoted premium rate, especially in non-linked contracts.

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Q. How are expenses typically covered in insurance premiums?

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