Question

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

a.

Required Solvency Margin (RSM)

b.

Actual Solvency Margin (ASM)

c.

Solvency margin

d.

Solvency ratio

Answer: (a).Required Solvency Margin (RSM) Explanation:Computation of RSM would address the interest rate risk and mortality risk inherent in the business of insurance.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. How is profit margin represented in insurance?

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

Q. How is the solvency ratio calculated?

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

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

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

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

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

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

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

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

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

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

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

Q. Which of the following assets is assumed to have zero value for ASM calculations?

Q. What does ASM stand for in insurance calculations?

Q. What is the potential consequence of an insurer being solvent but physically insolvent?

Q. What is the purpose of using Risk Based Capital (RBC) as a tool according to insurance regulators?

Q. How does the Risk Based Capital (RBC) approach benefit companies with good risk management systems?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 92 Actuarial Aspects of Product Development? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!