The person who calculates premium, sums assured and surrenders value in insurance contract is called...
The person who calculates premium, sums assured and surrenders value in insurance contract is called
- A) accountant
- B) actuary
- C) valuer
- D) auditor
Correct Answer: B) actuary
Explanation
In an insurance contract, there is a person who is responsible for calculating the premium, sums assured, and surrender value. This person is called the actuary.An actuary is a professional who uses mathematical and statistical techniques to assess risks and calculate the financial implications of various events, such as accidents or deaths, on insurance policies. They analyze data and use complex formulas to determine the appropriate premium amounts for different policyholders. They also calculate the sums assured, which is the amount of money that will be paid out in the event of a claim, and the surrender value, which is the amount of money that can be received if the policyholder decides to cancel the policy before its maturity.
The other options listed in the question are not correct. An accountant is responsible for keeping financial records and preparing financial statements, but they do not specifically deal with insurance calculations. A valuer assesses the value of properties, while an auditor reviews financial records for accuracy and compliance, but again, they do not specialize in insurance calculations like an actuary does.
Therefore, the correct answer to this question is Option B: actuary.