Question

How is profit margin represented in insurance?

a.

By the present value of premiums only

b.

By the initial commission only

c.

By the value of new business margin (VoNB margin) only

d.

By a combination of new business strain, present value of premium, initial commission, and annualized premiums

Answer: (d).By a combination of new business strain, present value of premium, initial commission, and annualized premiums Explanation:Profit margin in insurance can be represented by a combination of new business strain, present value of premium, initial commission, and annualized premiums.

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Q. How is profit margin represented in insurance?

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