All of the complying with statements about business goals in making a rating mechanism are true EXCEPT(a) The rating mechanism should encourage loss manage activities.(b) The rating system should it is in independent of long-run transforms in financial conditions.(c) The rating system should be simple to understand.(d) The rating mechanism should be stable over brief periods therefore that customer satisfaction deserve to be maintained
The unit the measurement supplied in insurance pricing is dubbed the (a) unit rate. (b) premium. (c) exposure unit. (d) endure unit.
You are watching: Which of the following statements about ratings is true?
The portion of an insurance allowance premium allocated to expenses, profit, and also a margin for contingencies is dubbed the (a) loading. (b) pure premium. (c) pistol premium. (d) endure rate.
Which that the following statements around experience rating room true?I. The insured"s previous loss endure is offered to identify the premium because that the following policy period.II. Its usage is generally restricted to little firms who actual suffer lacks credibility
All of this statements about the net solitary premium because that a life insurance plan are true EXCEPT(a) It deserve to be characterized as the existing value that future death benefits.(b) the takes into account insurer"s mortality suffer & investment income but not expenses.(c) that is based upon the assumption that premiums room paid uniformly transparent the plan year.(d) It"s based upon the assumption that death insurance claims are payment at the finish of the plan year.
Some life insurance policies use a loading in premium calculations. This loading allowance includes all the following except (a) margin because that dividends. (b) provision for expenses. (c) margin because that contingencies. (d) delivery for fatality claims.
A terminal make reservation is defined as the(a) policy reserve in ~ the beginning of any kind of policy year.(b) policy reserve in ~ the end of any type of given policy year.(c) unearned premium reserve necessary to refund the existing year"s premiums on any policies that are terminated.(d) insurance claim reserve because that unpaid claims on policies no longer in force.
An XYZ Ins. CO actuary calculation the current value the the supposed death claims the company will salary if the sells totality life come a 30-yr-old woman. This worth is called the (a) network level premium. (b) pistol premium. (c) net single premium. (d) life insurance plan reserve.
See more: Which One Punch Man Character Are You, Quiz: Which Hero In One
All that the statements around the an unified ratio space true EXCEPT(a) it is equal to the loss ratio plus the cost ratio.(b) A merged ratio >100 means an underwriting loss has actually occurred.(c) The linked ratio walk not consider investment income.(d) A linked ratio
Any applicant who stays in a particular zip password is quoted a premium 3 times higher than applicants from various other zip codes, which regulatory objective is no being met? (a) Rates should be adequate. (b) Rates need to not unfairly discriminate. (c) Rates should be responsive. (d) Rate need to not it is in excessive.
window.jonathanlewisforcongress.com<"productClickLinkData"> = <"name":"Chapter 13 Applied","id":"234338012","price":"","category":"premium content","variant":"study guide","position":"","brand":"anniecrotty">; QLoad("jonathanlewisforcongress.com.productClickLinkData"); return;})}elsewindow.jonathanlewisforcongress.com<"productClickLinkData"> = <"name":"Chapter 13 Applied","id":"234338012","price":"","category":"premium content","variant":"study guide","position":"","brand":"anniecrotty">; QLoad("jonathanlewisforcongress.com.productClickLinkData"); return;;window.location.assign("https://jonathanlewisforcongress.com/234338012/chapter-13-applied-flash-cards/");" id="1-234338012">