Life Insurance Policies
How does a benefit schedule support group underwriting?
Answer and explanation
Answer: D. Tying the amount to an objective classification removes individual selection while still allowing different amounts for different classes of member. Free choice would reintroduce the selection that group underwriting is designed to avoid.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, group benefit schedule
More life insurance policies questions
- Why is group life insurance generally cheaper per unit than individual insurance?
- Why is the annual premium for continuous premium whole life lower than for limited payment whole life at the same age and face amount?
- Why is the annual premium of a twenty payment whole life policy higher than that of continuous premium whole life?
- Why is the premium for a $1,000,000 survivorship life policy lower than for a $1,000,000 joint first-to-die policy on the same two lives?
- Within what period must a member apply to convert group life insurance to an individual policy in New York?
- A 20-year term policy allows conversion only during its first 12 years. What happens to the conversion privilege after year 12?
621 New York questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.