Vidyalelo
Commerce · Q681

Insurance

Graduate and Post Graduate · Commerce · question 681

Q681

Which of the below statement is correct?

A.
The typical loading to net premium would have 3 parts:- 'a constant amount for premiums, b) a constant amount for each ‘1000 sum assured ’ and c) a constant amount per policy
B.
The typical loading to a net premium would have premiums, parts: a) a percentage of premiums, b) a constant amount for each ‘1000 sum assured ’ and c) a constant amount per policy
Answer
C.
The typical loading to a net premium would have 3 parts:- a) a percentage of premiums, b) a constant percentage for each ‘1000 sum assured ’ and 'constant amount per policy
D.
The typical loading to a net premium would have 3 parts:- a) percentage of premiums b) a constant amount for each ‘1000 sum assured ’ and c) a percentage amount per policy

Answer: Option B

Solution

Answer: Option B
Solution:
Statement B is correct.
The typical loading to a net premium would have premiums, parts: a) a percentage of premiums, b) a constant amount for each ‘1000 sum assured ’ and c) a constant amount per policy.