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.

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Definitions:

Triple Bottom Line

A framework or theory that recommends that companies commit to focusing on social and environmental concerns just as they do on profits, encapsulating people, planet, and profit.

Economically

Pertaining to the efficient, disciplined, and prudent management of resources, often related to financial decisions and policies.

Environmentally

Pertaining to the natural world or ecological matters, often relating to the protection and conservation of the environment.

Board Of Directors

A group of individuals elected by shareholders to oversee the activities and direction of a company.