Which of the below statement is correct?

A. The typical loading to net premium would have 3 parts:- 'a constant amount for premiums, b) a constant amount for each ‘1000 sum assured ’ and c) a constant amount per policy

B. The typical loading to a net premium would have premiums, parts: a) a percentage of premiums, b) a constant amount for each ‘1000 sum assured ’ and c) a constant amount per policy

C. The typical loading to a net premium would have 3 parts:- a) a percentage of premiums, b) a constant percentage for each ‘1000 sum assured ’ and 'constant amount per policy

D. The typical loading to a net premium would have 3 parts:- a) percentage of premiums b) a constant amount for each ‘1000 sum assured ’ and c) a percentage amount per policy

Answer: Option B

Solution(By Examveda Team)

Statement B is correct.
The typical loading to a net premium would have premiums, parts: a) a percentage of premiums, b) a constant amount for each ‘1000 sum assured ’ and c) a constant amount per policy.