premiums - ANSWERthe amount paid to the insurer in exchange for the promise to pay benefits when they become due
actuaries - ANSWERspecialize in putting a price tag on risk. the risk must be high enough to
pay future benefits to customers
cover the insurers cost of administering the product...
premiums - ANSWERthe amount paid to the insurer in exchange for the promise to pay benefits
when they become due
actuaries - ANSWERspecialize in putting a price tag on risk. the risk must be high enough to
pay future benefits to customers
cover the insurers cost of administering the product
enable to insurer to make a reasonable profit.
mortality rates, which are the death benefit value
Surrender benefits paybale when a policy owner surrenders a policy for its cash surrender value.
Premium rates - ANSWERper unit of coverage, the rates must be
premium rates are based on - ANSWERcost of providing benefits guaranteed under the contract.
benefits include
adequate enough to make sure the insurer can cover its costs and contribute to its profits
equitable so that the amount individual insureds pay reflects the amount of risk they present.
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