Insurance Companies Use Actuarial Data to Measure The

question 69

Multiple Choice

Insurance companies use actuarial data to measure the:

• A) creditworthiness of a given population.
• B) risk of loss for a given population.
• C) wealth of a given population.
• D) gross productivity of a given population.
• E) age of a given population.

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Definitions:

Direct Tax

Tax on a particular person. Most important are federal personal income tax and payroll (Social Security) tax.

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of products like gasoline, alcohol, and tobacco, aimed at reducing their consumption or raising revenue.

Market Transactions

Actions that involve the exchange of goods or services for money, conducted within a marketplace.

GDP

Known as Gross Domestic Product, it is the sum of the market or money value of all produced finished goods and services within the territorial limits of a country in a given time span.