Question

In what scenario would a company make a loss based on the adjusted mortality assumption?

a.

If the actual number of deaths is less than the adjusted mortality assumption

b.

If the actual number of deaths is more than the adjusted mortality assumption

c.

If the actual number of deaths matches the adjusted mortality assumption

d.

None of the above

Answer: (b).If the actual number of deaths is more than the adjusted mortality assumption Explanation:If the actual number of deaths exceeds the adjusted mortality assumption, the company would incur a loss because it would have to pay out more death benefits than anticipated.

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Q. In what scenario would a company make a loss based on the adjusted mortality assumption?

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