Life Insurance Basics
Which three factors determine a life insurance premium?
Answer and explanation
Answer: B. A premium is built from expected mortality, the investment return the insurer expects on the money held, and the expense of issuing and administering the contract. Age and occupation feed the mortality assumption rather than standing alongside it, and mode and dividends adjust what is charged or returned.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, factors in premium determination
More life insurance basics questions
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- What must a life insurance illustration be labelled under New York's illustration rules?
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