Which of the Following Changes Would Tend to Increase the Premium

question 140

Multiple Choice

Which of the following changes would tend to increase the premium on a disability policy:

• A) a shorter elimination period
• B) use of "any occupation" definition of disability instead of "own occupation to which one is reasonably suited."
• C) decreasing the benefit level from 50% to 66% of prior earnings.
• D) decreasing the payment period from until age 65 to a maximum of 2 years.
• E) none of the above would tend to increase the premium.

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Definitions:

Developed Countries

Nations with a high level of economic development and standard of living, characterized by high income per capita, advanced technological infrastructure, and a wide range of services available to citizens.

Literacy

The ability to read and write, providing the fundamental skill for communication and learning in society.

Malnutrition

A condition resulting from an imbalanced dietary intake, either through undernutrition or overnutrition.

Extremely Short

A description of a very brief amount of time or a very small quantity; in economics, it may relate to short-term market observations.