ABC Insurance Company Calculated the Amount That It Expected to Pay

question 24

Multiple Choice

ABC Insurance Company calculated the amount that it expected to pay in claims under each policy sold.Rather than selling the insurance for the amount it expected to pay in claims,ABC added an allowance to cover the cost of doing business,including commissions,taxes,and acquisition expenses.This allowance is called a(n)

• A)policyowner dividend.
• B)premium.
• C)expense loading.
• D)rate credit.

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