ALU 202 ULTIMATE STUDY GUIDE – Questions With
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Terms in this set (251)
Underwriting criteria generally used in All are correct
the pricing of preferred policies
include which of the following? (Chapter 1)
(A) Blood pressure
(B) Cholesterol/HDL ratios
(C) Family history
All of the following are life insurance Asset risk
pricing components that are
established by regulation EXCEPT: (Chapter 1)
(A) Reserve basis
(B) Tax law
(C) Non-forfeiture laws
(D) Asset risk
The relationship of mortality savings Protective value
from a requirement to the cost of
administering the requirement is... (Chapter 1)
,All of the following statements It should measure the difference between select and
regarding a protective value study of ultimate mortality
underwriting requirements are correct
EXCEPT: (Chapter 1)
(A) It should evaluate which
requirement identified the underlying
impairment
(B) It should consider the PI's behavior
in accepting or rejecting the offered
policy
(C) It should measure the difference
between select and ultimate mortality
(D) It should ensure that the offered
product is "at the market"
A safety net that needs to be provided Risk-based capital
beyond the level of reserves being
held in case of a company's mortality (Chapter 1)
experience turns out to eb much
worse than expected is referred to
as...
For direct carriers, the average 50%
percent of premium assigned to cover
mortality is... (Chapter 2)
Companies will update existing cost All are correct
benefit studies for which of the
following reasons? (Chapter 2)
(A) Changes in pricing
(B) Competitive landscape
(C) Actual experience
,A hit rate of 3% associated with a table 6% increase in mortality
8 (200 debit) average rating results in
which of the following? (Chapter 2)
(A) 6% reduction in profit margin
(B) 6% increase in mortality
(C) 3% increase in mortality
(D) 6% reduction in mortality
Which of the following statements B only is correct
about cost/benefit studies is correct?
(Chapter 2)
(A) It is based on the historical
mortality found by a requirement
being studied
(B) It assumes mortality plays out
according to UW guidelines
(C) Interest and lapse rates are not
embedded in to the results
Actuaries will create a double Lapses and deaths
decrement table that takes which of
the following two factors into (Chapter 2)
consideration?
(A) Ratings and declines
(B) Lapses and deaths
(C) Placed and non-placed cases
(D) Declines and non-placed cases
The insured lives mortality table used Standard and ordinary
to establish life insurance policy
reserves is: (Chapter 3)
(A) Group life
(B) Standard and ordinary
(C) Individual annuity
(D) Individual ultimate
, All of the following statements They distinguish between the employed and the
regarding population life tables are unemployed
correct EXCEPT:
(Chapter 3)
(A) They are based on death rates
calculated for large segments of the
population
(B) They do not separate out smokers
(C) They distinguish between the
employed and the unemployed
(D) They are often segmented by
gender
When calculating mortality rates, the A only is correct
future values of a fixed death benefit
is affected by which of the following? (Chapter 3)
(A) Inflation
(B) Anticipated lapse rates
(C) Anticipated interest
The insured lives mortality table that Individual annuity
will typically have the lowest mortality
rate is: (Chapter 3)
(A) Individual annuity
(B) Group life
(C) Pension life
(D) Disabled lives life
In calculating mortality rates, the Dying during a specified interval
symbol "dx" refers to the number of
individuals: (Chapter 3)
(A) Applying for insurance during a
specified interval
(B) Dying during a specified interval
(C) Exposed to the risk of dying
(D) Alive at the beginning of a
specified interval
Verified Solutions
Save
Terms in this set (251)
Underwriting criteria generally used in All are correct
the pricing of preferred policies
include which of the following? (Chapter 1)
(A) Blood pressure
(B) Cholesterol/HDL ratios
(C) Family history
All of the following are life insurance Asset risk
pricing components that are
established by regulation EXCEPT: (Chapter 1)
(A) Reserve basis
(B) Tax law
(C) Non-forfeiture laws
(D) Asset risk
The relationship of mortality savings Protective value
from a requirement to the cost of
administering the requirement is... (Chapter 1)
,All of the following statements It should measure the difference between select and
regarding a protective value study of ultimate mortality
underwriting requirements are correct
EXCEPT: (Chapter 1)
(A) It should evaluate which
requirement identified the underlying
impairment
(B) It should consider the PI's behavior
in accepting or rejecting the offered
policy
(C) It should measure the difference
between select and ultimate mortality
(D) It should ensure that the offered
product is "at the market"
A safety net that needs to be provided Risk-based capital
beyond the level of reserves being
held in case of a company's mortality (Chapter 1)
experience turns out to eb much
worse than expected is referred to
as...
For direct carriers, the average 50%
percent of premium assigned to cover
mortality is... (Chapter 2)
Companies will update existing cost All are correct
benefit studies for which of the
following reasons? (Chapter 2)
(A) Changes in pricing
(B) Competitive landscape
(C) Actual experience
,A hit rate of 3% associated with a table 6% increase in mortality
8 (200 debit) average rating results in
which of the following? (Chapter 2)
(A) 6% reduction in profit margin
(B) 6% increase in mortality
(C) 3% increase in mortality
(D) 6% reduction in mortality
Which of the following statements B only is correct
about cost/benefit studies is correct?
(Chapter 2)
(A) It is based on the historical
mortality found by a requirement
being studied
(B) It assumes mortality plays out
according to UW guidelines
(C) Interest and lapse rates are not
embedded in to the results
Actuaries will create a double Lapses and deaths
decrement table that takes which of
the following two factors into (Chapter 2)
consideration?
(A) Ratings and declines
(B) Lapses and deaths
(C) Placed and non-placed cases
(D) Declines and non-placed cases
The insured lives mortality table used Standard and ordinary
to establish life insurance policy
reserves is: (Chapter 3)
(A) Group life
(B) Standard and ordinary
(C) Individual annuity
(D) Individual ultimate
, All of the following statements They distinguish between the employed and the
regarding population life tables are unemployed
correct EXCEPT:
(Chapter 3)
(A) They are based on death rates
calculated for large segments of the
population
(B) They do not separate out smokers
(C) They distinguish between the
employed and the unemployed
(D) They are often segmented by
gender
When calculating mortality rates, the A only is correct
future values of a fixed death benefit
is affected by which of the following? (Chapter 3)
(A) Inflation
(B) Anticipated lapse rates
(C) Anticipated interest
The insured lives mortality table that Individual annuity
will typically have the lowest mortality
rate is: (Chapter 3)
(A) Individual annuity
(B) Group life
(C) Pension life
(D) Disabled lives life
In calculating mortality rates, the Dying during a specified interval
symbol "dx" refers to the number of
individuals: (Chapter 3)
(A) Applying for insurance during a
specified interval
(B) Dying during a specified interval
(C) Exposed to the risk of dying
(D) Alive at the beginning of a
specified interval
