Which of the Following Changes Would Tend to Increase the Premium

question 3

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 66% to 50% of prior earnings
• D)decreasing the payment period from until age 65 to a maximum of 2 years
• E)none of the above

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Definitions:

Childhood Experiences

Events or situations experienced during one's early years of life that significantly influence personality development and psychological health.

Social Relationships

Connections or interactions between individuals or groups in a society, shaped by social structures, patterns, and cultural norms.

Personal Construct Theory

Kelly’s description of personality in terms of cognitive processes: We are capable of interpreting behaviors and events and of using this understanding to guide our behavior and to predict the behavior of other people.

Psychoanalysis

A therapeutic approach and theory of personality developed by Sigmund Freud that emphasizes unconscious motives and conflicts as the determinants of human behavior.