How is the Incurred Claim Ratio (ICR) calculated? Option: Net Claims Incurred divided by Net Premiums Collected, Net Premiums Collected minus Net Claims Incurred, Net Claims Incurred multiplied by Net Premiums Collected, Net Premiums Collected divided by Net Claims Incurred

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How is the Incurred Claim Ratio (ICR) calculated?

Net Claims Incurred divided by Net Premiums Collected

Net Premiums Collected minus Net Claims Incurred

Net Claims Incurred multiplied by Net Premiums Collected

Net Premiums Collected divided by Net Claims Incurred

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What does ICR stand for in the context of insurance?

Incurred Claim Ratio

Incurred Coverage Ratio

Insurance Claim Ratio

Insurance Coverage Rate

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Why is it crucial to consider the incurred claims ratio (ICR) alongside the claim settlement ratio?

ICR helps assess the financial stability and claim payout practices of an insurer

ICR reflects the customer satisfaction levels with an insurer's claim services

ICR reveals the efficiency of an insurer's claim processing system

ICR indicates the average time taken to settle claims by an insurer

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What is generally considered a healthy range for an insurance company's ICR?

Between 70% and 90%

Between 50% and 70%

Between 30% and 50%

Between 10% and 30%

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What does an ICR of over 100% indicate about an insurance company's financial health?

The company has a diverse range of insurance products.

The company has paid out more in claims than it received in premiums.

The company is in a strong financial position.

The company has a high number of new policyholders.

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What might a very low ICR (less than 50%) suggest about an insurance company's policies?

The policies offer comprehensive coverage with minimal exclusions.

The policies are likely to have many exclusions and be expensive.

The company has a strong track record of settling claims quickly.

The company is experiencing rapid growth and attracting new customers.