III IC-47 A-1 Practice Questions - III IC-47 A-1 Foundation Of Casualty Actuarial Science Part I Exam

In ratemaking, the principle of 'actuarial equity' implies that:

All policyholders pay the exact same premium. Premiums should be proportional to the expected loss and expenses of the insured. Premiums are based on the insured's ability to pay. Losses are distributed equally among all claimants.

Correct Answer:

Premiums should be proportional to the expected loss and expenses of the insured.

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