Which of the Following Changes Would Tend to Increase the Premium

question 140

Multiple Choice

Which of the following changes would tend to increase the premium on a disability policy:

• A) a shorter elimination period
• B) use of "any occupation" definition of disability instead of "own occupation to which one is reasonably suited."
• C) decreasing the benefit level from 50% to 66% of prior earnings.
• D) decreasing the payment period from until age 65 to a maximum of 2 years.
• E) none of the above would tend to increase the premium.

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Definitions:

Mass Production

The manufacture of large quantities of standardized products, often using assembly lines or automated technology.

Experience Differentiation

Engaging a customer with a product through imaginative use of the five senses, so the customer “experiences” the product.

Consumer's Five Senses

Refers to how businesses tap into taste, touch, sight, sound, and smell to influence consumer behavior and enhance the shopping experience.

Product Differentiation

Product differentiation is a marketing strategy that businesses use to distinguish their products from similar offerings on the market.