Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points
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It is important to monitor insurance ratios because - insurer should be aware of how much of the premium is spent by way of claims, the laws prescribe limits on expenses, a part of all premiums is used for expenses and it is important to ensure that actual expenses do not exceed estimated expenses
Incurred Claims Ratio (ICR) in general insurance - ICR = Claims paid during year + Outstanding claims at end of year - Outstanding claims at beginning of year/Premium income
Mode of payment - Frequency of premium payments like Monthly, Quarterly, Half Yearly and Annually
Limited Payment Policy - premiums are paid for a period shorter than the term of the policy.
Single Premium Policy - entire premium is paid in the first year itself, at the start of the policy.
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