New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    Which of the following is NOT a key expense considered

    in premium calculation?
    A Salaries Correct Answer Incorrect Answer
    B Rent and Utilities Correct Answer Incorrect Answer
    C Reinsurance costs Correct Answer Incorrect Answer
    D Investment income Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Key expenses considered in premium calculation typically include:                                                                                       Salaries and wages Rent and utilities Claims costs Commissions Reinsurance costs Marketing and advertising expenses Operating expenses Investment income is not directly included in the calculation of the premium itself, but it can contribute to the insurer's overall profitability.

    Practice Next