Which of the Following, are the Components, used to calculate the Gross Premium?
I: Net Premium.
II: Expense-Loading.
III: Loading for Contingencies.
IV: Bonus-Loading.
A)I and II.
B)II and III.
C)I and IV.
D)I, II, III, and IV.

Question

Quizplus · Accepted Answer

The Gross Premium is calculated by adding the Net Premium (the amount needed to cover claims) with various loadings including Expense-Loading (costs of administering the policy), Loading for Contingencies (to cover unexpected losses), and Bonus-Loading (additional charges or fees). Therefore, all components I, II, III, and IV are used in the calculation.

Which of the Following, Are the Components, Used to Calculate