Question

How are mortality or morbidity assumptions typically represented in practice?

a.

By comparing past and future mortality rates

b.

By using a combination of own experience and industry standards

c.

By analyzing the impact of different distribution channels

d.

By adjusting standard table rates based on geographical location

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).By using a combination of own experience and industry standards Explanation:Mortality or morbidity assumptions in practice are typically represented by adjusting standard table rates based on a combination of the company's own experience and industry standards. For example, this may be represented as "90% of LIC 2006 – 08 mortality tables," indicating an adjustment factor based on the company's experience.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How are mortality or morbidity assumptions typically represented in practice?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What does credibility analysis in mortality or morbidity analysis primarily focus on?

View solution

Q. How is the credibility factor calculated in mortality or morbidity analysis?

View solution

Q. What does a credibility factor of 0% signify in mortality or morbidity analysis?

View solution

Q. In the formula for finding adjustment factors, what does 'A' represent?

View solution

Q. How does the adjustment factor change with a credibility factor of 100%?

View solution

Q. What is mortality risk primarily concerned with in insurance?

View solution

Q. What is "model" risk in mortality assumption setting?

View solution

Q. How does parameter risk differ from model risk in mortality assumption setting?

View solution

Q. What contributes to parameter risk in mortality assumption setting?

View solution

Q. How does data risk relate to parameter risk in mortality assumption setting?

View solution

Q. What contributes to the "random fluctuations" risk in mortality assumption setting?

View solution

Q. Which type of insurance product would typically have the maximum financial impact of mortality risk?

View solution

Q. What are the main ways of controlling mortality risk in insurance?

View solution

Q. In an established insurance market, what factors contribute to low model and parameter risk?

View solution

Q. What represents a difficult-to-quantify risk in mortality assumption setting?

View solution

Q. What is the primary purpose of underwriting in the context of life insurance?

View solution

Q. What are the two main types of underwriting in life insurance?

View solution

Q. How does reinsurance help insurers manage risk?

View solution

Q. What risk is associated with reinsurance arrangements?

View solution

Q. How does underwriting policy influence mortality or morbidity assumptions in pricing?

View solution
View All MCQs on IC 92 Actuarial Aspects of Product Development

Recommended Subjects

Are you eager to expand your knowledge beyond IC 92 Actuarial Aspects of Product Development? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Human Anatomy and Physiology

Embark on a journey through the human body with our Human Anatomy and Physiology...

Concrete Technology

Welcome to Concrete Technology, a category that unravels the secrets behind the...

Basic Electrical Engineering

Master the fundamentals of Electrical Engineering with our specialized category....

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...

IC 92 Actuarial Aspects of Product Development

Sharpen your understanding of actuarial principles in product development with our...

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...