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  • IRDA - GIC Agent Mock - 3
  • Premium sufficient to pay for losses only is known as
Multiple choice

Premium sufficient to pay for losses only is known as

  1. level premium

  2. pure premium

  3. stepped premium

  4. increased stepped premium

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Pure premium is sufficient enough to pay for losses, however it does not account for administrative expenses or profit.

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