Chapter 7 Flashcards
1
Q
Net Single Premium =
A
present value of all expected benefits
2
Q
calculate Net Level Premium of ordinary life insurance policy
A
divide
the Net Single Premium by the present value of a whole life annuity due
of $1. (NLP = NSP divided by PVLAD)
3
Q
The difference between net premium and gross premium:
A
loading
(company expenses, contingencies, and profit).
