ALU 202 Practice Test Review – Questions With
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Terms in this set (43)
Annuity life tables A type of insured lives life table tabulating the
mortality rights of individuals who have purchased
annuities. Consider to represent the lowest mortality
rates among insured lives.
Basic life tables Also known as select and ultimate tables. A type of
insured lives life table tabulating the death rates for
individuals who purchased insurance at standard or
better (preferred) right. Subdivided buy tobacco use
and by select an ultimate periods.
Cohort (generation) life table Type of life table tabulating the year to year death
rates for a group of individuals born around the same
time (for example same year)
Period (Current) Life tables A life table tabulating death rates for a particular
period of time for individuals of different ages at the
time mortality data was collected (different birth
cohorts)
Standard and ordinary life tables Aggregate insured lives life table in which select and
ultimate mortality rates are combined to arrive at the
aggregate death rates for each age hey Joe, that's
ignoring most of the effect of selection resulting
from underwriting. Death rates in such a table are
somewhat higher (more conservative) then those in
the basic select an ultimate tables
, Ultimate period The period after the Select Period during which the
effect of the underwriting is assumed to no longer be
effective in selecting standard or better risks from
the entire pool of insured persons. Often consider to
be the. Beyond 20 to 25 years after underwriting
Select period The period from life insurance policy issue to the
time at which the effect of underwriting has been
assume to no longer be effective in selecting
standard or better rest from among the entire pool
of insured persons. Often considered to be about 20
to 25 years.
Primary focus of multi life The avoidance of anti-selection
underwriting
Facultative reinsurance Reinsurance in which the risk is offered by a direct
writer to a reinsurer for underwriting approval. The
reinsurer has the option to except, rate, or decline
the offering.
Coinsurance (reinsurance) A method of reinsurance under which the assuming
company receives a proportionate share of all of the
risks and cash flows of the policy. The reinsurer
receives its share of the premiums and benefits, and
sets up its share of the reserves.
Quota share reinsurance A form of reinsurance in which premiums and losses
are shared proportionately between the ceding
company and the reinsurer. Under this type of
reinsurance, the same percentage applies to all
reinsured policies and in a given class of business.
Excess of retention A type of reinsurance in which a ceding company
establishes a dollar amount retention limit and a
reinsurer agrees to the same amounts over this limit,
up to the reinsurer's automatic binding limit.
Accurate Solutions
Save
Terms in this set (43)
Annuity life tables A type of insured lives life table tabulating the
mortality rights of individuals who have purchased
annuities. Consider to represent the lowest mortality
rates among insured lives.
Basic life tables Also known as select and ultimate tables. A type of
insured lives life table tabulating the death rates for
individuals who purchased insurance at standard or
better (preferred) right. Subdivided buy tobacco use
and by select an ultimate periods.
Cohort (generation) life table Type of life table tabulating the year to year death
rates for a group of individuals born around the same
time (for example same year)
Period (Current) Life tables A life table tabulating death rates for a particular
period of time for individuals of different ages at the
time mortality data was collected (different birth
cohorts)
Standard and ordinary life tables Aggregate insured lives life table in which select and
ultimate mortality rates are combined to arrive at the
aggregate death rates for each age hey Joe, that's
ignoring most of the effect of selection resulting
from underwriting. Death rates in such a table are
somewhat higher (more conservative) then those in
the basic select an ultimate tables
, Ultimate period The period after the Select Period during which the
effect of the underwriting is assumed to no longer be
effective in selecting standard or better risks from
the entire pool of insured persons. Often consider to
be the. Beyond 20 to 25 years after underwriting
Select period The period from life insurance policy issue to the
time at which the effect of underwriting has been
assume to no longer be effective in selecting
standard or better rest from among the entire pool
of insured persons. Often considered to be about 20
to 25 years.
Primary focus of multi life The avoidance of anti-selection
underwriting
Facultative reinsurance Reinsurance in which the risk is offered by a direct
writer to a reinsurer for underwriting approval. The
reinsurer has the option to except, rate, or decline
the offering.
Coinsurance (reinsurance) A method of reinsurance under which the assuming
company receives a proportionate share of all of the
risks and cash flows of the policy. The reinsurer
receives its share of the premiums and benefits, and
sets up its share of the reserves.
Quota share reinsurance A form of reinsurance in which premiums and losses
are shared proportionately between the ceding
company and the reinsurer. Under this type of
reinsurance, the same percentage applies to all
reinsured policies and in a given class of business.
Excess of retention A type of reinsurance in which a ceding company
establishes a dollar amount retention limit and a
reinsurer agrees to the same amounts over this limit,
up to the reinsurer's automatic binding limit.
