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FINANCIAL LITERACY

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A term used (more commonly in reinsurance) to denote the pure loss cost of a particular class of business or reinsurance treaty. Burning cost may be expressed either 1. In currency, or 2. As a ratio to some particular measure of the class of business or the reinsurance treaty; for example, in thecase of a direct account it may be the ratio of claims incurred to total sums insured; in the case of a reinsurance treaty, the ratio of claims incurred ...

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