Average Comparative Ratio = _____

question 28

Multiple Choice

Average comparative ratio = _____.

• A) the average of the comparative ratio for each employee divided by the number of employees
• B) the total of the comparative ratio of all employees divided by the number of employees
• C) the number of employees divided by the average of the comparative ratio for each employee
• D) the number of employees divided by the total of the comparative ratio for each employee

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Definitions:

Guaranteed Insurability

An optional provision in an insurance contract that allows the insured to pay an extra premium initially in exchange for a guaranteed option to buy more insurance at certain specified times later on with no questions asked and no medical examination required.

Premiums

Payments made for insurance coverage, often periodically, to keep the insurance policy active and the insured protected against specified risks.

Insurable Interest

The financial interest that a policyholder has in the person or property that is insured.

Life Insurance

An insurance contract that provides monetary compensation for losses suffered by another’s death.