Question

How is the final rate determined in the numerical rating method?

a.

By debiting or crediting all the factors and totaling them.

b.

By multiplying the base rating with the extra mortality rate.

c.

By adding the base rating and the extra mortality rate.

d.

By taking the average of the base rating and the extra mortality rate.

Posted under IC22 Life Insurance Underwriting

Answer: (a).By debiting or crediting all the factors and totaling them. Explanation:Once all the factors are debited or credited, they are then totaled to determine a final rate which would then classify the applicant as standard risk, sub-standard risk, or highly sub-standard risk.

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Q. How is the final rate determined in the numerical rating method?
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