Q. What additional benefit is gained with strict underwriting controls?

View solution

Q. What factor influences the decision on mortality rates used by insurers?

View solution

Q. Why is it important to assess the expected change in experience over time?

View solution

Q. How often are historical investigations typically conducted?

View solution

Q. Which type of insurance contract is considered to have higher mortality risk?

View solution

Q. Why are long-term policies considered riskier in terms of mortality rates?

View solution

Q. Why is the available mortality experience within the company or industry important for determining mortality rates?

View solution

Q. What role do reinsurer's rates play in determining mortality rates?

View solution

Q. Why is past experience of mortality rates in the economy important?

View solution

Q. How do overseas operations of an insurer impact the determination of mortality rates?

View solution

Q. What operational risk is associated with the acceptance of claims?

View solution

Q. What is the primary purpose of using a standard table for mortality rates?

View solution

Q. Why might a company adjust mortality rates from a standard table?

View solution

Q. What alternative data source can be used if a company lacks adequate mortality experience?

View solution

Q. Why is it important to avoid using very old data for mortality rate adjustments?

View solution

Q. What is the typical period of data used for mortality investigations?

View solution

Q. Why might data be classified into similar groups during analysis?

View solution

Q. When might further adjustments need to be made to the adjusted mortality rates?

View solution

Q. Why is it important to consider expected changes in mortality rates over time?

View solution

Q. In what scenario can future expected mortality changes be ignored?

View solution