Important Points for IC 83 - Group Insurance and Retirement Benefit Schemes Exam
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Commissions may be expressed as a flat percentage of premium OR it may be layered.
In the context of group insurance, prospective experience rating refers to setting a premium rate for the future coverage period by reflecting a groups past experience, to the extent that it is credible and is expected to continue into the future.
Retrospective experience rating refers to allowing the group to participate in the good or adverse claims experience it will have at the end of the insurance term.
The premiums are paid in advance by the group client over the year and thus there may be some interest credit on net premium basis.
The concept of insurance lies in spreading the risk.
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