IAI SP8 Practice Questions - IAI Subject SP8 General Insurance Pricing Exam

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A motor portfolio has expected claim frequency of 0.12 claims per vehicle-year and expected severity of INR 40,000 per claim. The pure risk premium per vehicle-year is:

INR 3,333 INR 333,333 INR 48,000 INR 4,800

Correct Answer:

INR 4,800

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