All of the following statements about business objectives in designing a rating mechanism are true EXCEPT(a) The rating mechanism should encourage loss manage activities.(b) The rating device should be independent of long-run transforms in financial conditions.(c) The rating system should be simple to understand.(d) The rating device should be secure over brief periods so that customer satisfaction have the right to be maintained
The unit of measurement offered in insurance allowance pricing is dubbed the (a) unit rate. (b) premium. (c) exposure unit. (d) endure unit.
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The portion of an insurance premium allocated come expenses, profit, and a margin because that contingencies is dubbed the (a) loading. (b) pure premium. (c) gun premium. (d) suffer rate.
Which of the adhering to statements around experience rating space true?I. The insured"s previous loss endure is used to identify the premium because that the following policy period.II. Its use is generally limited to tiny firms whose actual suffer lacks credibility
All of this statements around the net solitary premium because that a life insurance plan are true EXCEPT(a) It can be defined as the current value that future fatality benefits.(b) that takes into account insurer"s mortality endure & invest income yet not expenses.(c) the is based on the presumption that premiums room paid uniformly transparent the policy year.(d) It"s based upon the presumption that death claims are payment at the end of the plan year.
Some life insurance plans use a loading in premium calculations. This loading allowance includes all the following except (a) margin for dividends. (b) provision because that expenses. (c) margin because that contingencies. (d) supplication for death claims.
A terminal reserve is characterized as the(a) plan reserve in ~ the beginning of any policy year.(b) policy reserve in ~ the finish of any kind of given policy year.(c) unearned premium reserve essential to refund the present year"s premiums on any policies that room terminated.(d) claim reserve because that unpaid claims on policies no longer in force.
An XYZ Ins. CO actuary calculated the present value the the supposed death claims the agency will salary if that sells whole life come a 30-yr-old woman. This value is referred to as the (a) network level premium. (b) pistol premium. (c) net solitary premium. (d) life insurance plan reserve.
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All of the statements about the linked ratio space true EXCEPT(a) it is same to the loss ratio plus the cost ratio.(b) A an unified ratio >100 method an underwriting loss has occurred.(c) The combined ratio go not take into consideration investment income.(d) A combined ratio
Any applicant who lives in a particular zip code is quoted a premium 3 times greater than applicants from various other zip codes, i m sorry regulatory objective is no being met? (a) Rates have to be adequate. (b) Rates should not unfairly discriminate. (c) Rates have to be responsive. (d) Rate have to not be excessive.
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