ALU 202 Definitions – Questions With Detailed
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Terms in this set (102)
Annuity life tables A type of insured lives' life table tabulating the
mortality rates of individuals who have purchased
annuities. Considered 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) rates. Subdivided by tobacco use
and by select and ultimate periods.
Cohort (generation) life table A type of life table tabulating the year-to-year death
rates for a group (cohort) of individuals born around
the same time (e.g. same year).
Disabled lives life tables A life table tabulating the mortality rates of persons
no longer able to work due to a disability.
Flat extra rating A method used in underwriting to account for extra
(substandard) mortality risk by charging constant
extra premium in addition to the base (standard)
premium.
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)
, Population life table A life table tabulating death rates for large segments
of the population without regard to individual health,
socioeconomic status, or employment status.
Select factors Scalar factors applied to life tables to reduce
projected mortality rates to levels thought to be
attractive to potential life insurance buyers while
remaining achievable through the combination of
target market selection, underwriting, and
anticipated secular (general population) mortality
improvements.
Select period The period from life insurance policy issue to the
time at which the effect of underwriting has been
assumed to no longer be effective in selecting
standard or better risks from among the entire pool
of insured persons. Often considered to be about 20
to 25 years.
Social security (pension) life tables A type of population life table tabulating the
mortality rates of individuals who were actively
employed at some time.
Standard and ordinary life tables Aggregate insured lives' life tables in which select
and ultimate mortality rates are combined to arrive at
aggregate death rates for each age, thus ignoring
most of the effect of selection resulting from
underwriting. Death rates in such a table are
somewhat higher (more conservative) than those in
the basic select and ultimate tables.
Table rating A method used in underwriting to account for extra
(substandard) mortality risk by charging extra
premium based on a multiple of the base (standard)
premium.
Answers
Save
Terms in this set (102)
Annuity life tables A type of insured lives' life table tabulating the
mortality rates of individuals who have purchased
annuities. Considered 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) rates. Subdivided by tobacco use
and by select and ultimate periods.
Cohort (generation) life table A type of life table tabulating the year-to-year death
rates for a group (cohort) of individuals born around
the same time (e.g. same year).
Disabled lives life tables A life table tabulating the mortality rates of persons
no longer able to work due to a disability.
Flat extra rating A method used in underwriting to account for extra
(substandard) mortality risk by charging constant
extra premium in addition to the base (standard)
premium.
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)
, Population life table A life table tabulating death rates for large segments
of the population without regard to individual health,
socioeconomic status, or employment status.
Select factors Scalar factors applied to life tables to reduce
projected mortality rates to levels thought to be
attractive to potential life insurance buyers while
remaining achievable through the combination of
target market selection, underwriting, and
anticipated secular (general population) mortality
improvements.
Select period The period from life insurance policy issue to the
time at which the effect of underwriting has been
assumed to no longer be effective in selecting
standard or better risks from among the entire pool
of insured persons. Often considered to be about 20
to 25 years.
Social security (pension) life tables A type of population life table tabulating the
mortality rates of individuals who were actively
employed at some time.
Standard and ordinary life tables Aggregate insured lives' life tables in which select
and ultimate mortality rates are combined to arrive at
aggregate death rates for each age, thus ignoring
most of the effect of selection resulting from
underwriting. Death rates in such a table are
somewhat higher (more conservative) than those in
the basic select and ultimate tables.
Table rating A method used in underwriting to account for extra
(substandard) mortality risk by charging extra
premium based on a multiple of the base (standard)
premium.
