Which of the Following Statements Is True About an Insurance

question 11

Multiple Choice

Which of the following statements is true about an insurance firm?

• A)The reserves for insurance products are computed by underwriters.
• B)Actuaries use mortality tables and life expectancy tables to estimate the future losses that the insurer must pay.
• C)Morality tables show the length of life expected for people born in each year.
• D)Life expectancy tables indicate the percent of expected deaths for each age group.
• E)Underwriters specialize in forecasting the losses and developing the losses' potential future impact on the insurers.

---

Definitions:

Diverse Populations

A term referring to the inclusion and representation of individuals from a wide range of demographic and cultural backgrounds.

Prejudice

The display of negative, irrational attitudes towards members of diverse populations.

Not-for-Profit Organisations

Organizations that operate to serve a public or social benefit, rather than to make profit for owners or shareholders.

Administrators

Managers who work in public or not‐for‐profit organisations.