Interest earned by insurers on premiums collected in advance is not considered in insurance rate making.

Name: Interest earned by insurers on premiums collected in advance is not considered in insurance rate making.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Interest earned on premiums collected in advance is considered in insurance rate making because it can significantly reduce the cost of providing insurance. This interest income can offset some of the insurer's expenses, allowing for potentially lower premiums for policyholders.

Interest Earned by Insurers on Premiums Collected in Advance Is