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How do insurance company calculate premium?

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Posted

How do insurance company calculate premium?

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Peter Paul

Every insurance company set their underwriting criteria for issuing a policy and how much to price it at. They raise a series of question to the policy holder if he is interested in taking a policy with them and they identify the risk and likely they are to pay out.

Life Insurance

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The insurance premium depends on the car’s value, the engine power, its seating capacity, type of vehicle, age of vehicle, city of registration, period of coverage, the value of other accessories like the air-conditioner, music system etc.

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