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

---

Definitions:

Degrees Of Freedom

The number of values in a calculation that are free to vary, often related to the sample size, affecting the shape of various statistical distributions.

Standard Normal Distribution

A normal distribution with a mean of zero and a standard deviation of one, used as a basis for comparison in many statistical methodologies.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about the population.

Normal Distribution

A symmetric distribution in the shape of a bell, indicating that occurrences of data close to the mean are more common than those far from the mean.