New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following does NOT form a part of

    “Book” price calculation?
    A Claims Costs Correct Answer Incorrect Answer
    B Management Expenses Correct Answer Incorrect Answer
    C Commission Correct Answer Incorrect Answer
    D Investment income Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The "Book" price calculation in insurance typically includes the following components: Claims Costs Management Expenses Commission Investment income is not directly included in the "Book" price calculation as it represents a return on the insurer's assets and can offset some of the other expenses.

    Practice Next