Question

What is the value of standard risk?

a.

The maximum level of risk an individual can pose to an insurance company.

b.

The relative value assigned for each factor in relation to the reference point value of 100%.

c.

The value that is assigned to each factor based on extensive medicoactuarial research and mortality studies.

d.

The value that is assigned to an individual who has a perfect health record.

Posted under IC22 Life Insurance Underwriting

Answer: (b).The relative value assigned for each factor in relation to the reference point value of 100%. Explanation:The value of standard risk is the reference point value of 100% assigned by the underwriter for each factor in relation to which the relative value of each factor is assigned.

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