Question

    Which of the following is NOT a factor considered in a

    "burning cost" analysis?
    A Claims experience Correct Answer Incorrect Answer
    B Inflation Correct Answer Incorrect Answer
    C Investment income Correct Answer Incorrect Answer
    D Changes in exposure Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The correct answer is C. Investment income. Burning cost analysis primarily focuses on factors directly related to claims, such as past claims experience, inflation, and changes in exposure. Investment income is not a direct factor in this analysis.

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