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What is an actuarially fair insurance policy?
Actuality fair insurance policy is a policy which takes the premium which is equal to the amount ofbenefit paid to the person i.e. in this policy insurance company neither makes any profit nor anyloss.
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in an actuarially fair insurance policy. If you were to take all of the premiums that everyone paid, they would be exactly equal to all of the payments by the insurance company. So if everyone let's say across the country, paid perhaps, ah, $100 million let's say to a particular insurance company in premiums than the benefits paid out by that insurance company should be the exact same amount.
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