Question
a.
Premium amounts can be determined using the mortality and morbidity rates
b.
Mortality rate is a measure of the number of deaths (in general, or due to a specific cause) in a population, scaled to the size of that population, per unit of time.
c.
Morbidity rate refers to the number of individuals in poor health during a given time period (the prevalence rate) or the number of newly appearing cases of the disease per unit of time.
d.
Most important factors which are important in choosing a rate are mortality or morbidity risk, target market, underwriting, liability profile and past experience.
Posted under IC 92 Actuarial Aspects of Product Development
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Q. What is the primary purpose of mortality and morbidity rates in insurance?
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