Multiple Choice
Which of the following statements is not correct about the insurance premium?
A) The forecast of policyholders' losses is the starting point for the calculation of the risk premium for an insurance policy.
B) The fair rate of return, which is a part of the insurance premium, is governed by law.
C) Loading expenses increases the insurance premium.
D) Most investment income of insurance companies comes from low risk investments, which reduces the insurance premium.
Correct Answer:
Verified
Correct Answer:
Verified
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