Que. 1 : For the term ‘New business strain’ which of the following is correct?
   1.  Expenses and reserves are higher than the total premium (First year premium and renewal premium)
   2.  Expenses in the first year premium is low, but reserves are high
   3.  Expenses and reserves are higher than the first year premium
   4.  None of the above
Que. 2 : Which of the following is a element of determining the premium?
   1.  Expenses of management
   2.  Interest
   3.  Mortality
   4.  All of the above
Que. 3 : Which of the following is a element of determining the premium?
   1.  Reserves
   2.  Interest
   3.  Mortality
   4.  All of the above
Que. 4 : Which of the following is a element of determining the premium?
   1.  Interest
   2.  Mortality
   3.  Bonus loading
   4.  All of the above
Que. 5 : To arrive at “Net Premium” the first step is to estimate the _________________ value of __________________ claim costs.
   1.  Future, present
   2.  Present, future
   3.  All of the above
   4.  None of the above
Que. 6 : To arrive at “Net Premium” the first step is to estimate the present value of future claim costs. The reason for estimating present value is that we are trying to find out how much we need at hand today to meet claims that may arise in the future. This process of estimating present value brings us to the next element in premium determination, namely
   1.  Reserves
   2.  “Interest”
   3.  Risk
   4.  Expenses
Que. 7 : _________________ the mortality rate in the mortality table, ___________________ the premiums would be
   1.  Lower, Higher
   2.  Higher, Higher
   3.  Lower, Lower
   4.  Higher, Lower
Que. 8 : _______________ the interest rate assumed, __________________ the premium
   1.  Higher, Lower
   2.  Lower, Higher
   3.  Higher, Higher
   4.  Lower, Lower
Que. 9 : Which of the below is the Guiding Principles for determining Amount of Loading?
   1.  Equity
   2.  Adequacy
   3.  Competitiveness
   4.  All of the above
Que. 10 : Life insurers have to incur various types of operating expenses including:
   1.  Staff salaries
   2.  Agents training and recruitment
   3.  Commissions of agents
   4.  All of the above

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