1)If we have to calculate premiums using a profit test, what all assumptions are we going to make and what all things we should consider? Like we do have to decide a discount rate, what else? 2)We do have to consider assumptions related to expenses i believe? Then will we set the same assumptions on expenses while calculating reserves? 3)Also, are we going to consider reserves as well while calculating premiums? If yes, how? Because if we calculate profits (traditional contracts), we do consider reserves!
