The ABC Insurance has the target claim ratio policy of 70% of net premium (after deducting the acquisition and general operating expenses). The company has a policy that will be renewal soon. The current gross premium been charged at $1000. Assuming that company has to pay the sales acquisition cost of 15% and general operation cost of 10%. What will be the new gross premium to be charged if the current claim ratio is 120% of net premium?

Answer rating: 100% (QA)

Gross premium charged 1000 Less Sales Acquistion c... View the full answer