The notes say that in practice, all of the overhead expenses can be considered as per-policy while the direct expenses fall into all three groups. This means that the per premium and per sum assured categories are very broadly 100% direct expenses, while the per-policy expenses are a mix between overhead and direct. Please explain these two sentences.
It says expenses might be one of: per policy, per premium or per sum assured. But expenses are also either direct or overheads. If all overheads are per policy then they can't be the other two. Hence the other two must all be direct.
