Q. How is the value of computer equipment computed for ASM calculations?

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Q. What is the purpose of calculating the solvency ratio in insurance?

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Q. What is the regulatory requirement for maintaining the solvency ratio by insurers?

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Q. What does the profit margin (return on capital) represent?

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Q. Which of the following is considered as an outflow in the calculation of profit margin?

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Q. What is the advantage of using a cash flow method to determine profit margins and premium rates?

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Q. What is the term used to refer to the estimate of profit made when the last policyholder exits the portfolio?

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Q. How are profit margins typically used in the insurance industry?

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Q. What is the Required Solvency Margin (RSM)?

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Q. What risks does the computation of RSM address in the insurance business?

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Q. What does the Actual Solvency Margin (ASM) represent?

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Q. How is the solvency ratio calculated?

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Q. What does Risk Based Capital (RBC) test in insurance?

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Q. How is profit margin represented in insurance?

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Q. Which of the following represents an excess of assets over liabilities?

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Q. Computation of which of the following would address the interest rate risk and mortality risk inherent in the business of insurance?

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