Chapter 22 - Expenses Flashcards

1
Q

Types of expenses

A

Fixed vs variable

Direct vs indirect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Expense allocation

A

Class of business:
Direct expenses staff timesheets
Indirect expenses several ways

Function:
Initial expenses
Maintenance: renewal, investment
Termination

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Adjustment to pricing expense loadings

A

Cross subsidies
Inflation
Competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly