Chapter 22 - Expenses Flashcards
1
Q
Types of expenses
A
Fixed vs variable
Direct vs indirect
2
Q
Expense allocation
A
Class of business:
Direct expenses staff timesheets
Indirect expenses several ways
Function:
Initial expenses
Maintenance: renewal, investment
Termination
3
Q
Expense allocation
A
Percentage of premium Percentage of funds under management Fixed amount per contract Fixed amount per claim or Percentage of claim amount Combination
4
Q
Adjustment to pricing expense loadings
A
Cross subsidies
Inflation
Competition