Life Insurance Policies
What is experience rating in a group life plan?
Answer and explanation
Answer: A. A large group's own claims history is credible enough to price its renewal, so favourable experience lowers the rate. Pricing from the insurer's whole book is manual rating, used where a group is too small for its own experience to be reliable.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, group experience rating
More life insurance policies questions
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- What does an underwriter examine when assessing a group for life insurance?
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