Question

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

a.

Old data may not accurately reflect current mortality trends

b.

Old data is usually unavailable

c.

Old data may result in higher premiums

d.

Old data may lead to inconsistencies in pricing

Answer: (a).Old data may not accurately reflect current mortality trends Explanation:It is important to avoid using very old data for mortality rate adjustments because old data may not accurately reflect current mortality trends, potentially leading to pricing inaccuracies.

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

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