Question

What is the standard premium charged to individuals?

a.

It is charged if the predictive mortality does not deviate much from the standard values

b.

It is charged if the individual is a sub-standard risk

c.

It is charged if the individual is older than a certain age

d.

It is charged if the individual has a pre-existing medical condition

Answer: (a).It is charged if the predictive mortality does not deviate much from the standard values Explanation:According to the premium table, the standard premium is charged to individuals if the predictive mortality does not deviate much from the standard values, when compared to that indicated in the mortality table provided by the actuaries.

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Q. What is the standard premium charged to individuals?

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