solution

‘ I NEED ALL OF THE ANSWER ‘

1. Life expectancy refers to: *

How you expect to live

The number of years a person wish to live

The average number of years a person can expect to live

All of the above

2. The human life value approach considers the
individual’s contribution to society when valuing the benefit.
*

True

False

3. Life insurance is justified if the insured has no
earned income: *

False

True

4. Premature Death is: *

Death of a teenager

Death of the family head

None of the above

Death at a younger age

5. Single premium whole life policy requires a single
payment every year? *

True

False

6. Determining rates based on past experience is:
*

Schedule Rating

Experience Rating

Retrospective Rating

Unbiased Rating

7 . Similar clients can be charged different rates even
if they share similar exposures. *

True

False

8. The amount that must be added to the pure premium to
cover expenses and earn profit is: *

Gross Rate

Contribution Margin

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Gross Premium

9. Balance Sheet primarily consists of *

Assets, Liabilities, and Income

None of the above

Equity, Assets, and Liabilities

Revenue, Assets, and Equity

10. The level of policyholder’s surplus helps
determining potential client benefits the company can offer
*

False

True

11. To determine the installment premiums, the future
value at the end of the policy period must be discounted back.
*

True

False

12. Claims that incurred but not reported falls under:
*

Both a and b

Unearned Premium Reserve

Tabular Method

IBNR reserve

13. Rates should not fluctuate with changes to economic
conditions. *

True

False

14. Judgment method is the most effective method for
determining reserves: *

False

True

15. Policyholders must pay more than the actual value of
their protection? *

True

False