Category Archives: Insurance Terms

About Level Premiums in Insurance Business

By | Published: December 30, 2009
If it is expected that out of 10,000 persons at a specified age, the probability is that one may die within one year, the mortality rate at that age is said to be 0.01%. The risk premium chargeable for persons at that age would be Rs.0.10 per rs.1,000SA. If a policy has a term of [...]
Posted in Insurance Terms | Tagged , , , , , , | 2 Comments

About Premium in insurance Business

By | Published: December 30, 2009
In a contract of insurance, the insurer promises to pay to the policyholder a specified sum of money, in the event of s specified happening. The policyholder has to pay a specified amount to the insurer, in consideration of this promise. ‘Premium‘ is the name given to this consideration that the policyholder has to pay [...]
Posted in Insurance Terms | Tagged , , , , , , , | Leave a comment