Life Insurance Policies
Why do group underwriting requirements impose a minimum level of participation?
Answer and explanation
Answer: A. Participation minimums keep healthy members in the pool, without which the plan attracts the impaired and the rate becomes unsupportable. Expense and administration are secondary considerations.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, minimum participation
More life insurance policies questions
- Why does a limited payment whole life policy need testing against the modified endowment contract rules?
- Why does level term cost less than whole life for the same face amount at the same age?
- Why does New York limit the amount of insurance that may be written on the life of a minor?
- Why does survivorship life cost less than an individual policy of the same face amount on either insured?
- 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?
621 New York questions like this one.
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