Vidyalelo
Commerce · Q440

Insurance

Graduate and Post Graduate · Commerce · question 440

Q440

Which of the below is not a factor in determining life insurance premium?

A.
Mortality
B.
Rebate
Answer
C.
Reserves
D.
Management expenses

Answer: Option B

Solution

Answer: Option B
Solution:
Rebate is not a factor in determining life insurance premium. Rebate is a portion of the agent's commission returned to an insured or anything else of value given an insured as an inducement to buy.