Question

The formula for calculating annual insurance premiums is _____.

Answer 1

The amount of insurance premiums charged by the insurance companies is determined by statistics and mathematical calculations done by the underwriting department of the insurance company. The level of insurance premium charged to a customer depends on statistical data that exists about life history, age and health.

Answer 2

Given

Explanation:

Insurance premium per month = Monthly insured amount x Insurance Premium Rate

Insured person's self-paid premium per month= Monthly insured amount x Insurance Premium Rate x Insured person's self-paid ratio

Insurance premium paid by the governments per month = Monthly insured amount x Insurance premium rate – Insured person's self-paid premium