Kevin Is an Underwriter Who Is Currently Under the Process

question 12

Multiple Choice

Kevin is an underwriter who is currently under the process of underwriting a group insurance of a firm.He is currently analyzing past losses-the frequency, severity, and length of illnesses or disabilities-to calculate the appropriate premium for the insureds.Identify the key underwriting determinant characteristics of the group that Kevin is trying to deduce.

• A)Financial stability of the employer
• B)Stability of the group
• C)Persistency of the group
• D)Prior experience of the plan
• E)Size of the group

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Definitions:

Income

The money received by individuals or entities, typically in exchange for providing labor, selling goods, or making investments.

Substitute Goods

Products or services that can replace or be used in place of one another, having the ability to satisfy similar consumer needs or desires.

Iced Tea

A chilled beverage made by cooling brewed tea and typically served with ice, sometimes sweetened or flavored.

Complementary Goods

Products or services that are typically consumed together, such that demand for one increases demand for the other.