Underwriting Basics Flashcards
1
Q
what are the three basic premium factors
A
mortality rate, expenses, and interest
2
Q
of the three premium factors, which has the greatest on impact in making one policy priced differently than another
A
the mortality charge
3
Q
annual gross premium of a life insurance policy is defined as
A
net premium plus expense.
4
Q
premium rates for life insurance are expressed as…
A
an annual cost per $1000 of face amount. ex. if cost is $12 per $1000, then the annual premium for a $50k policy would by $600 ($12x50)
