Question

In India, why are mortality rates assumptions particularly important for some contracts?

a.

Because premium rates are reviewable for individual class of products

b.

Because premium rates are guaranteed and not reviewable for individual class of products

c.

Because mortality rates are adjusted annually

d.

Because mortality rates are fixed and unchangeable

Answer: (b).Because premium rates are guaranteed and not reviewable for individual class of products Explanation:In India, mortality rates assumptions are particularly important for some contracts because premium rates are guaranteed and not reviewable for individual class of products, meaning there are no chances of correcting mistakes later.

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Q. In India, why are mortality rates assumptions particularly important for some contracts?

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