Important Points for IC 26 - Life Insurance Finance Exam
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A contract of insurance is a contract of
In life insurance business, it is important for insurers to correctly predict the risk, as it helps them in determining the cost of insurance. The greater the degree of accuracy with which this can be done, the more scientific will be the basis of life insurance.
Risk can be measured with the help of the Law of Averages which operates only when we are dealing with large numbers.
For life insurers, premium is the most of insurance, and for policyholders, it is the money that they have to pay to avail certain amount of insurance cover.
The mortality tables are based on the past data of the insurance companies' experience with the insured.
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