ALU 202 Ch 3: Life Tables, Underwriting, and an
Introduction to Mortality Analysis – Questions &
Answers
Save
Terms in this set (147)
The Origins of Life Tables True
True or False:
The earliest attempts at life insurance
were sponsored by friendly societies
in the 17th and 18th centuries.
The Origins of Life Tables Friendly societies
_______________ were comprised of
individuals who banded together for
mutual benefit, including providing for
the widows and orphans of deceased
members.
The Origins of Life Tables 1) Contributions were voluntary and thus the death
benefit couldn't be guaranteed
Initially, friendly societies used a
"post-death" method of funding death 2) Unless new members were recruited, the size of
benefits in which each member of the the group gradually diminished due to continued
society agreed to pay a specified deaths and, as a result, death benefits decreased
amount of money when a fellow
member died. 3) The number of claims increased each year
because the group as a whole aged. Therefore, the
List the 3 problems with this method: amount each beneficiary received further diminished
in proportion to the increase in claims
,The Origins of Life Tables 1) assessment
2) life tables
1) To cope with these problems,
friendly societies adopted what
became known as the _______________
method of funding in which protection
was offered for a specified period of
time (usually a year) and the necessary
money to fund this plan was raised by
assessing each member an equal
amount in advance.
2) However, this required that a
reliable method be devised to project
the number of deaths likely to occur
over the covered period and this, in
turn, depended on the development
of __________________.
The Origins of Life Tables John Graunt
Who is credited with the first serious
attempt at developing a population
life table and in 1662 published a
"Table of Survivors" based on his
records of the weekly burials and
deaths occurring in London?
The Origins of Life Tables Northampton
Variations of the ______________ tables of
1771-1783 were used by the Society for
Equitable Assurances on Lives and
Survivorships (now the Equitable Life
Assurance Society) to calculate
premiums until the mid-1800s.
,Calculation of Mortality Rates True
True or False:
All life tables are constructed using
similar principles and contain
fundamentally the same information -
annual mortality rates tabulated by
age, sex, and other factors
The Origins of Life Tables Mortality
______________ rates for different ages are
calculated by observing the number
of deaths (dx) occurring in a
population over a specified period of
time (an interval, designated by "x")
and determining the number of
individuals exposed to the risk of
dying during that interval.
The Origins of Life Tables Exposure
_________________ (Ex) is expressed as the
product of the number of individuals
who are alive at the beginning of an
interval who are exposed to the risk of
dying (1x) and the duration over which
that exposure takes place, usually in
years.
The Origins of Life Tables person
Exposure is almost always expressed
in ______________-years.
, The Origins of Life Tables interval
The ___________ mortality rate (qx) is
calculated by dividing the number of
deaths occurring during an interval by
the corresponding exposure (qx =
dx/Ex)
The Origins of Life Tables True
True or False:
Most life tables use 1 year intervals, so
the mortality rates are typically annual
mortality rates.
The Origins of Life Tables - Table 1 1x
Name the symbol for the number of
individuals alive at the beginning of an
interval (x) who are exposed to risk of
dying.
The Origins of Life Tables - Table 1 dx
Name the symbol for the number of
deaths during an interval.
The Origins of Life Tables - Table 1 Ex
Name the symbol for exposure during
an interval.
Calculated by:
(Persons exposed to risk of dying)
(duration of interval exposure) or
(1x)(interval duration) usually
expressed in "person-years"
Introduction to Mortality Analysis – Questions &
Answers
Save
Terms in this set (147)
The Origins of Life Tables True
True or False:
The earliest attempts at life insurance
were sponsored by friendly societies
in the 17th and 18th centuries.
The Origins of Life Tables Friendly societies
_______________ were comprised of
individuals who banded together for
mutual benefit, including providing for
the widows and orphans of deceased
members.
The Origins of Life Tables 1) Contributions were voluntary and thus the death
benefit couldn't be guaranteed
Initially, friendly societies used a
"post-death" method of funding death 2) Unless new members were recruited, the size of
benefits in which each member of the the group gradually diminished due to continued
society agreed to pay a specified deaths and, as a result, death benefits decreased
amount of money when a fellow
member died. 3) The number of claims increased each year
because the group as a whole aged. Therefore, the
List the 3 problems with this method: amount each beneficiary received further diminished
in proportion to the increase in claims
,The Origins of Life Tables 1) assessment
2) life tables
1) To cope with these problems,
friendly societies adopted what
became known as the _______________
method of funding in which protection
was offered for a specified period of
time (usually a year) and the necessary
money to fund this plan was raised by
assessing each member an equal
amount in advance.
2) However, this required that a
reliable method be devised to project
the number of deaths likely to occur
over the covered period and this, in
turn, depended on the development
of __________________.
The Origins of Life Tables John Graunt
Who is credited with the first serious
attempt at developing a population
life table and in 1662 published a
"Table of Survivors" based on his
records of the weekly burials and
deaths occurring in London?
The Origins of Life Tables Northampton
Variations of the ______________ tables of
1771-1783 were used by the Society for
Equitable Assurances on Lives and
Survivorships (now the Equitable Life
Assurance Society) to calculate
premiums until the mid-1800s.
,Calculation of Mortality Rates True
True or False:
All life tables are constructed using
similar principles and contain
fundamentally the same information -
annual mortality rates tabulated by
age, sex, and other factors
The Origins of Life Tables Mortality
______________ rates for different ages are
calculated by observing the number
of deaths (dx) occurring in a
population over a specified period of
time (an interval, designated by "x")
and determining the number of
individuals exposed to the risk of
dying during that interval.
The Origins of Life Tables Exposure
_________________ (Ex) is expressed as the
product of the number of individuals
who are alive at the beginning of an
interval who are exposed to the risk of
dying (1x) and the duration over which
that exposure takes place, usually in
years.
The Origins of Life Tables person
Exposure is almost always expressed
in ______________-years.
, The Origins of Life Tables interval
The ___________ mortality rate (qx) is
calculated by dividing the number of
deaths occurring during an interval by
the corresponding exposure (qx =
dx/Ex)
The Origins of Life Tables True
True or False:
Most life tables use 1 year intervals, so
the mortality rates are typically annual
mortality rates.
The Origins of Life Tables - Table 1 1x
Name the symbol for the number of
individuals alive at the beginning of an
interval (x) who are exposed to risk of
dying.
The Origins of Life Tables - Table 1 dx
Name the symbol for the number of
deaths during an interval.
The Origins of Life Tables - Table 1 Ex
Name the symbol for exposure during
an interval.
Calculated by:
(Persons exposed to risk of dying)
(duration of interval exposure) or
(1x)(interval duration) usually
expressed in "person-years"
