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, cost of the product is impacted by - Answer: 1. The target
market 2. product features 3. sales approach 4.udw process
2 key items re stratergic directions - Answer: *org needs skill
set to appropriately analyze the risks being considered
*org must be realistic about the underlying cost of different
offerings (simplified issue approach is significantly different
from that of a super-preferred fully underwritten product
offering)
assignment of surplus - Answer: Another component in
constructing profit expectations
Profitability Expectation - Answer: *key component for a
product offering.
*a large component of expected profit margins is pressure for a
competitive price which is driven by the generally accepted
belief that LI products are bought as a "commodity."
surplus - Answer: capital that is held above & beyond the
expected needs of the product in order to ensure that all
policyholder claims will be met. (With a very high probability)