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What are the two primary streams of cash flows in an insurance company's operations?
  • a)
    Inflows and outflows.
  • b)
    Underwriting and investment income.
  • c)
    Premiums and claims.
  • d)
    Reinsurance and policy servicing.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What are the two primary streams of cash flows in an insurance company...
In an insurance company's operations, the two primary streams of cash flows are inflows and outflows. Inflows include premiums, investment income, refunds, and other sources of funds coming into the company, while outflows consist of claim payments, reinsurance premiums, agent remuneration, salaries, interest, and dividends to investors, among other expenses.
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What are the two primary streams of cash flows in an insurance company's operations?a)Inflows and outflows.b)Underwriting and investment income.c)Premiums and claims.d)Reinsurance and policy servicing.Correct answer is option 'A'. Can you explain this answer?
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