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Many factors are taken into account when insurance premiums are calculated, including age, health, length of cover, etc. For more information check out - investopedia.com/ask/answers/09/calculating-premium.asp
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∙ 11y agoannual base prenium mulply by the rating factor
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Compare and contrast a term contracts' renewable and convertaible features?
Renewable means as long as you pay the premiums you will always have the policy. Convertible means you can convert your policy to perm without further evidence of insurability. This should be under Life Insurance questions.
What are some benefits of stolen vehicle tracking?
Major benefit of stolen vehicle tracking is being able to identify and locate any stolen vehicle using GPS tracking. Also cars with stolen vehicle tracking can be subject to reduced insurance premiums.
What factors help to determine the growth of insurance industry in Kenya?
The factors are:Lack of the people's trust in the industry.It is a young industry and the people are not accustomed to paying premiums to alleviate risks.Mismanagement and incompetent management of the insurance companies.Laws set by Parliament failed to meet the unique needs of the third world market.Dishonesty by the public and lack of a big pool of customers.Lack of proper research for decision making.
What challenges that face publishing industry in Kenya?
CHALLENGES FACING INSURANCE INDUSTRY IN KENYA Insurance industry in Kenya is faced by several challenges that make their operation in the Kenyan market not so easy. These challenges are dependent on the people, the status of the market, laws governing insurance in Kenya and the lack of proper information about insurance. The Kenyan people don't have enough trust in the insurance business majorly due to the number of non-paid claims that lie about within the market. Many claims have not been paid due to prolonged investigations to the point that rather than other insureds recommend insurance to their friends they always end up discouraging them and most of those who seek insurance always do so in order to gain the benefit of tax reduction that comes with the package. Kenyan market is also a young market that is still not well versed with the diversity of the insurance industry as most people are not used to paying premiums in order to alleviate the risks. Most Kenyans therefore consider these rates exorbitant thus they don't seek insurance. This has been bad for business in the industry as most insurance companies are found straining to meet their budget and pay claims. Some have resorted to unethical means of luring customers into this industry. These are mainly through reduced rates that thus lead to unpaid claims. Mismanagement of insurance companies is also a notorious factor that hamper insurance industries in Kenya. Some insurance industry lack proper management due to lack of transparency, this has led to customers losing their money in the process and thus making the public lose trust in the industry. Incompetent management could lead to unrealistically low premiums that make insurance affordable yet not payable. Incompetency is also found in the relay of wrong message to the public by various insurance agents whose qualifications are most times in question. Legal laws set by parliament to govern the insurance industry has also sometimes failed to meet the unique needs of the third world market prominent in Kenya. When insurance companies are forced to pay up a big amount of money for licence and the burden ends up passed to the public has led to high insurance rates that have proved difficult to pay. The motor industry has been forced into insurance by the law such that normally motorists just insure in order to use the roads not as a means of protection. Dishonesty by the public has also hampered business in Kenya as the public has failed to meet the principle of distribution in cases of double insurance thus leading to benefiting from a misfortune. Sometimes the claims are overstated thus proving to be costly to the public. In situations of insurance application, most people have ended up filling in half-truths and lies so as to be charged cheaper premiums. Lack of a big pool of customers has led to some risks being uninsurable as the insurance lies on the principle of creating a common pool so that the good of many benefit the misfortune of some. This has really hampered insurance companies in Kenya. Lack of proper research has led to a poor background for decision making especially in finding out the insurable risks and setting up the premiums to forgo in order to gain the insurance cover.
What is anti-selection?
The adverse impact on an insurer when risks selected have a higher chance of loss than that contemplated by the applicable insurance rate. Also known as adverse selection. The selection of such risks is adverse because the rate is inadequate.In other word, tendency of people with significant potential to file claims wanting to obtain insurance coverage. For example, those with severe health problems want to buy health insurance, and people going to a dangerous place such as a war zone want to buy more life insurance. Companies employing workers in dangerous occupations want to buy more worker's compensation coverage. In order to combat the problem of adverse selection, insurance companies try to reduce their exposure to large claims by either raising premiums or limiting the availability of coverage to such applicants.
Difference between insurance density and insurance penetration?
Insurance penetration is calculated as the ratio pf the percentage of total insurance premiums (in US dollars) to gross domestic product. Insurance density is calculated as the ratio of total insurance premiums (in US dollars) to total population.
What is an EMR Insurance Rating?
An EMR (experience modification rate) insurance rating is a way to determine the workers' compensation premiums for businesses. An annual basis is calculated and premiums can go up or down.
Is insurance premiums for fire insurance an example of variable cost?
is insurance premiums for fire insurance an example of variable cost?
What is modified life insurance?
Modified Life Insurance is Ordinary Life Insurance under which premiums are calculated so that the first few years of premiums are less than normal, and subsequent premiums in later years are higher than normal. This type of coverage may also be called Graded Premium Whole Life Insurance under which insurance premiums are lower than normal for the first few years, then gradually increase for the next several years until they become level for the remainder of the policy.
Is there any life insurance that has single digit premiums?
Life insurance premiums vary by policy. There are few that offer single digit premiums.
How do you figure the amount of premiums paid into life insurance policy?
The premium is calculated on the basis of many factors. The insurance company will calculate the premium and inform you before you buy the policy.
What rights do an employee have if their company deducted insurance premiums from their pay but failed to pay the insurance premiums to the insurance company and the insurance was canceled?
Seek an Attorney.
How is ratio calculated?
Loss Ratio in insurance is the ratio of total losses paid out in claims plus adjustment expenses divided by the total earned premiums. If an insurance company, for example, pays out $60 in claims for every $100 in collected premiums, then its loss ratio is 60%.
Can you deduct insurance premiums on taxes?
Depends on how you paid the premiums. If you paid the premiums on a pretax basis, then you cannot declare the premiums. Many COBRA payments, retiree insurance payments and so on can be deducted.
How is loss ratio calculated?
Loss Ratio in insurance is the ratio of total losses paid out in claims plus adjustment expenses divided by the total earned premiums. If an insurance company, for example, pays out $60 in claims for every $100 in collected premiums, then its loss ratio is 60%.
Can a nursing home owner seek reimbursement from medicare for insurance premiums paid for laibility insurance?
No, Medicare does not reimburse liability insurance premiums.
Can you deduct group insurance premiums on taxes?
Depends on how you paid the premiums. If you paid the premiums on a pretax basis, then you cannot declare the premiums. Many COBRA payments, retiree insurance payments and so on can be deducted.
