Question

What are the two major conclusions that can be derived from the study of mortality and interest rates in life insurance?

a.

Higher interest rates lead to higher premiums, and higher mortality rates lead to lower premiums

b.

Higher interest rates lead to lower premiums, and higher mortality rates lead to lower premiums

c.

Higher interest rates lead to higher premiums, and higher mortality rates lead to higher premiums

d.

Higher interest rates lead to lower premiums, and higher mortality rates lead to higher premiums

Posted under IC38 Life Insurance Agent Exam

Answer: (b).Higher interest rates lead to lower premiums, and higher mortality rates lead to lower premiums Explanation:The two major conclusions are that higher interest rates lead to lower premiums, and higher mortality rates lead to lower premiums.

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Q. What are the two major conclusions that can be derived from the study of mortality and interest rates in life insurance?
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