Flashcards in Chapter 1 Deck (35)
define tax laws for insurance companies in canada.
insurance companies are subject to corporate taxes at a federal and provincial level in much the same way that united states companies are taxes. The fed tax related to company's income and the provincial level they relate to premiums.
In simple terms how do you price a product?
schedule out a series of expected expenses and couple that with a stream of premium payments to product a profit that meets the corporate requirements for the product. It must also be filed and approved with each state before it is made available for sale in that state.
The interaction between the actuary and the underwriter in product development takes form through two main decision. What are they
the setting of the underwriting requirements and the reasonableness of the pricing expectations
What are the two components in the underwriting requirement process?
verifying information obtained from the proposed insured
discovering information that is either new to or is being concealed by the proposed insured.