n NISM Certifications
NSM General NISM
Medium

What is the difference between a rate and a premium?

Practice question from IC 38 Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rates set by insurer, premiums by insured

  2. B

    Rates are the same as premiums

  3. Premiums are the price per unit of insurance; rates help calculate future claims and expenses

    Correct answer

  4. D

    None of the above

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

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