Under the Pure Premium Method of Determining Class Rates,the Gross

question 33

Multiple Choice

Under the pure premium method of determining class rates,the gross rate is determined by which of the following formulas?

• A)pure premium/(1 + expense ratio)
• B)pure premium/(1 - expense ratio)
• C)(1 + pure premium)/expense ratio
• D)expense ratio/(1 - pure premium)

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Definitions:

Coveted Rewards

Highly desired benefits or prizes that individuals or groups seek to obtain, often driving competition and motivation.

George Homans

An influential American sociologist known for his work in developing social exchange theory, which views social interactions in terms of cost-benefit analyses.

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The accomplishment of an aim or purpose, often measured by societal, personal, or objective criteria.

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The selection of one option or item over others based on greater appeal or value to the individual.