Question

Why is a steady stream of new entrants important for a group insurance scheme?

a.

To increase administrative costs

b.

To ensure a large proportion of aged members

c.

To prevent the group from becoming stagnant

d.

To decrease the likelihood of lapses in coverage

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).To prevent the group from becoming stagnant Explanation:A steady stream of new entrants ensures that the group does not become stagnant and helps prevent lapses in coverage.

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Q. Why is a steady stream of new entrants important for a group insurance scheme?
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