Identify the correct statement in the following.

A. In determination of premium higher the rate of interest assumed the lower is the premium

B. In determination of premium higher the rate of interest assumed higher is the premium

C. In determination of premium lower the rate of interest assumed lower is the premium

D. Premium is not determined by rate of interest assumed to be earned by the insurer

Answer: Option A

Solution(By Examveda Team)

In determination of premium higher the rate of interest assumed the lower is the premium.