The Net Premiums Collected by a Life Insurer for a Particular

question 41

Multiple Choice

The net premiums collected by a life insurer for a particular block of policies,plus interest income at an assumed rate,less assumed death benefits paid is called the

• A)cash value.
• B)retrospective reserve.
• C)net amount at risk.
• D)prospective reserve.

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Definitions:

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating how spread out the data points are.

Return

A measure of the income generated by an investment relative to its cost, often expressed as a percentage.

Regression Equation

A statistical formula used to predict the value of a dependent variable based on one or more independent variables.

Adjusted Beta

A measure that estimates a security's future beta, adjusting for the tendency of a security's historical beta to revert towards the market average of 1.