n NISM Certifications
NSM General NISM
Medium

How is the pure premium determined?

Practice question from IC 38 Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. By adding percentages for expenses, reserves, and profits

    Correct answer

  2. B

    By calculating the average loss percentage per vehicle

  3. C

    By analyzing past loss data over a period of time

  4. D

    By expressing losses as a percentage of total vehicle value

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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