Mortality And Morbidity

Question 1

Risk classification

Answer 1

Providers use rating factors to identify characteristics of the risks they underwrite, and to pool risks into homogenous groups. All risks in a group can then be charged the same premium. Anti-selection can arise when heterogeneity exists in a group of risks

Question 2

Principal factors contributing to mortality and morbidity

Answer 2

Besides age and sex:
• occupation
• nutrition
• housing
• climate
• education
• genetics
• HIV
They become less significant at old age leading to mortality convergence

Question 3

Selection: the process by which lives in a population are divided into separate homogenous groups

Answer 3

• temporary initial selection where the level of risk diminishes or increases since the occurrence of a selection process
• class selection where a select group is taken from a population consisting of a mixture of different types (classes) of individuals with different characteristics
• time selection where a select group is taken from a population of individuals from different calendar years
• adverse selection where the individual’s own choice influences the composition of a select group
• spurious selection where the distorting effect of a confounding factor gives the false impression that one of the other forms of selection is present