Question 1
In general insurance pricing, the technical premium is best described as the premium that:
Correct Answer:
Covers expected claims, expenses, cost of capital and a profit margin, before competitive adjustment
Question 2
An actuary decomposes the office premium into its components. Which sequence correctly orders the build-up from the most fundamental component outward?
Correct Answer:
Risk premium, expense loading, cost-of-capital loading, profit margin, commercial adjustment
Question 3
The frequency-severity approach to estimating the risk premium models the risk premium per policy as:
Correct Answer:
Expected claim frequency multiplied by expected claim severity
Question 4
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:
Correct Answer:
INR 4,800
Question 5
A rating factor is most usefully described as:
Correct Answer:
A measurable policyholder or risk characteristic used to vary the premium
Question 1
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About this Exam

Prepare with the IAI SP8 Practice Questions - IAI Subject SP8 General Insurance Pricing Exam practice quiz. This question bank includes 100 questions covering pricing, premium, risk, credibility, and rating. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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

This practice set contains 100 questions from the matching question bank and focuses on pricing, premium, risk, credibility, and rating. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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