Which of the following statements pertaining to life insurance premiums is NOT correct?
A) The interest factor is a premium charge based on assumed lost earnings after claims.
B) An insurance company invests the premium money it collects to earn interest.
C) The expense factor in premium ratemaking frequently is referred to as loading.
D) For an insurance company, the costs of doing business must be reflected in its premiums."
Ans: A) The interest factor is a premium charge based on assumed lost earnings after claims.
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