The portion of an insurance premium allocated to expenses,profit,and a margin for contingencies is called the
A)loading.
B)pure premium.
C)gross premium.
D)experience rate.

Question

Quizplus · Accepted Answer

Loading is the portion of an insurance premium allocated to expenses, profit, and a margin for contingencies. Pure premium is the portion of an insurance premium that covers only the expected cost of losses, without loading. Gross premium is the total amount of premium charged for an insurance policy, including pure premium and loading. Experience rate is a premium rate that reflects the actual loss experience of the insured.

The Portion of an Insurance Premium Allocated to Expenses,profit,and a Margin