Licentiate Examination - IC 11 - Practice of General Insurance Exam - Important Points
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Standing Charges: These expenses are fixed in amount irrespective of the volume of the business transacted (e.g. taxes, bank interest, salaries to permanent staff, etc.)
Net Profit: This is turnover minus variable and standing charges.
Gross Profit: Standing charges and net profit together constitute the gross profit of the business.
Loaind / Malus - if the claims under a policy are very high, a malus or loading of premium is collected at renewal.
No Claim Bonus?or NCB is a reward given by an insurance company to an insured for not raising any?claim?requests during a policy year. The NCB discount is offered on the premium amount during renewal.
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