Risk Margins Are Determined on the Basis Of

question 24

Multiple Choice

Risk margins are determined on the basis of:

• A) the robustness of valuation models used.
• B) past experience of the insurer and the industry.
• C) the reliability and volume of data.
• D) all of the given answers.

---

Definitions:

Miscellaneous Expenses

Minor or incidental expenses that do not fit into the standard expense categories of a business's budget.

Unadjusted Trial Balance

A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries.

Account Title

The name given to an account in the ledger to identify the type of transactions it records, such as "Sales Revenue" or "Accounts Payable."

Unearned Revenues

Money received by a company for goods or services that have yet to be delivered or performed.