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Questions and Answers
What is the formula to calculate the rate per exposure unit by pure premium method?
What is the formula to calculate the rate per exposure unit by pure premium method?
- Incurred losses + Loss adjustment expenses / Exposure units
- Pure premium + Expenses per exposure unit / (1 - Profit and contingences factor) (correct)
- Pure premium / Expenses per exposure unit
- Earned premium - Expenses provision / Exposure units
How is the pure premium calculated in the given problem?
How is the pure premium calculated in the given problem?
- Incurred losses + Loss adjustment expenses / Exposure units (correct)
- Earned premium - Expenses provision / Exposure units
- Incurred losses - Loss adjustment expenses / Exposure units
- Expenses / Exposure units
What is the value of expenses per exposure unit in the given problem?
What is the value of expenses per exposure unit in the given problem?
- SR 14
- SR 12.5
- SR 13.5
- SR 13 (correct)
What is the formula to calculate the Expenses per exposure unit?
What is the formula to calculate the Expenses per exposure unit?
What is the purpose of the profit and contingences factor in the rate per exposure unit calculation?
What is the purpose of the profit and contingences factor in the rate per exposure unit calculation?
What is the value of the rate per exposure unit in the given problem?
What is the value of the rate per exposure unit in the given problem?
What is the purpose of the Loss Ratio method in ratemaking?
What is the purpose of the Loss Ratio method in ratemaking?
What is included in the expenses provision in the Loss Ratio method?
What is included in the expenses provision in the Loss Ratio method?
What is the result of adding the expected loss ratio and expenses provision in the Loss Ratio method?
What is the result of adding the expected loss ratio and expenses provision in the Loss Ratio method?
What is the formula to calculate the Rate per exposure unit?
What is the formula to calculate the Rate per exposure unit?
What is the purpose of the expenses per exposure unit in the rate calculation?
What is the purpose of the expenses per exposure unit in the rate calculation?
What is the primary factor that rates or premiums for insurance are based on?
What is the primary factor that rates or premiums for insurance are based on?
What is the purpose of loading the expected claim payments in actuarial calculations?
What is the purpose of loading the expected claim payments in actuarial calculations?
What is the formula for calculating the pure premium?
What is the formula for calculating the pure premium?
In the pure premium method, what is the purpose of the earned car-years?
In the pure premium method, what is the purpose of the earned car-years?
What is the primary role of an actuary in an insurance company?
What is the primary role of an actuary in an insurance company?
What is the significance of the 5% profit and contingences in the pure premium method?
What is the significance of the 5% profit and contingences in the pure premium method?
