ALU 202 PRACTICE TEST REVIEW
Annuity life tables - Answers - A type of insured lives life table tabulating the mortality
rights of individuals who have purchased annuities. Consider to represent the lowest
mortality rates among insured lives.
Basic life tables - Answers - Also known as select and ultimate tables. A type of insured
lives life table tabulating the death rates for individuals who purchased insurance at
standard or better (preferred) right. Subdivided buy tobacco use and by select an
ultimate periods.
Cohort (generation) life table - Answers - Type of life table tabulating the year to year
death rates for a group of individuals born around the same time (for example same
year)
Period (Current) Life tables - Answers - A life table tabulating death rates for a particular
period of time for individuals of different ages at the time mortality data was collected
(different birth cohorts)
Standard and ordinary life tables - Answers - Aggregate insured lives life table in which
select and ultimate mortality rates are combined to arrive at the aggregate death rates
for each age hey Joe, that's ignoring most of the effect of selection resulting from
underwriting. Death rates in such a table are somewhat higher (more conservative) then
those in the basic select an ultimate tables
Ultimate period - Answers - The period after the Select Period during which the effect of
the underwriting is assumed to no longer be effective in selecting standard or better
risks from the entire pool of insured persons. Often consider to be the. Beyond 20 to 25
years after underwriting
Select period - Answers - The period from life insurance policy issue to the time at
which the effect of underwriting has been assume to no longer be effective in selecting
standard or better rest from among the entire pool of insured persons. Often considered
to be about 20 to 25 years.
, Primary focus of multi life underwriting - Answers - The avoidance of anti-selection
Facultative reinsurance - Answers - Reinsurance in which the risk is offered by a direct
writer to a reinsurer for underwriting approval. The reinsurer has the option to except,
rate, or decline the offering.
Coinsurance (reinsurance) - Answers - A method of reinsurance under which the
assuming company receives a proportionate share of all of the risks and cash flows of
the policy. The reinsurer receives its share of the premiums and benefits, and sets up its
share of the reserves.
Quota share reinsurance - Answers - A form of reinsurance in which premiums and
losses are shared proportionately between the ceding company and the reinsurer.
Under this type of reinsurance, the same percentage applies to all reinsured policies
and in a given class of business.
Excess of retention - Answers - A type of reinsurance in which a ceding company
establishes a dollar amount retention limit and a reinsurer agrees to the same amounts
over this limit, up to the reinsurer's automatic binding limit.
Dodd Frank act - Answers - Passed in 2009, included provisions that created a federal
insurance office (FIO) and the treasury department. It was a mandate to protect the US
financial system from systemic risk presented by financial institutions deemed too big to
fail
Privacy rule - Answers - In the US. Major goal of this legal action is to assure that
individuals health information is properly protected while allowing the flow of health
information needed to provide and promote high-quality healthcare and to protect the
public health and well-being. Addressed the use and disclosure of individuals health
information called "protected health information"
PIPEDA, personal information protection and electronic documents Act - Answers - In
Canada, establish his ground rules for how private sector or organizations can collect,
use or disclose personal information in the course of commercial activities
Annuity life tables - Answers - A type of insured lives life table tabulating the mortality
rights of individuals who have purchased annuities. Consider to represent the lowest
mortality rates among insured lives.
Basic life tables - Answers - Also known as select and ultimate tables. A type of insured
lives life table tabulating the death rates for individuals who purchased insurance at
standard or better (preferred) right. Subdivided buy tobacco use and by select an
ultimate periods.
Cohort (generation) life table - Answers - Type of life table tabulating the year to year
death rates for a group of individuals born around the same time (for example same
year)
Period (Current) Life tables - Answers - A life table tabulating death rates for a particular
period of time for individuals of different ages at the time mortality data was collected
(different birth cohorts)
Standard and ordinary life tables - Answers - Aggregate insured lives life table in which
select and ultimate mortality rates are combined to arrive at the aggregate death rates
for each age hey Joe, that's ignoring most of the effect of selection resulting from
underwriting. Death rates in such a table are somewhat higher (more conservative) then
those in the basic select an ultimate tables
Ultimate period - Answers - The period after the Select Period during which the effect of
the underwriting is assumed to no longer be effective in selecting standard or better
risks from the entire pool of insured persons. Often consider to be the. Beyond 20 to 25
years after underwriting
Select period - Answers - The period from life insurance policy issue to the time at
which the effect of underwriting has been assume to no longer be effective in selecting
standard or better rest from among the entire pool of insured persons. Often considered
to be about 20 to 25 years.
, Primary focus of multi life underwriting - Answers - The avoidance of anti-selection
Facultative reinsurance - Answers - Reinsurance in which the risk is offered by a direct
writer to a reinsurer for underwriting approval. The reinsurer has the option to except,
rate, or decline the offering.
Coinsurance (reinsurance) - Answers - A method of reinsurance under which the
assuming company receives a proportionate share of all of the risks and cash flows of
the policy. The reinsurer receives its share of the premiums and benefits, and sets up its
share of the reserves.
Quota share reinsurance - Answers - A form of reinsurance in which premiums and
losses are shared proportionately between the ceding company and the reinsurer.
Under this type of reinsurance, the same percentage applies to all reinsured policies
and in a given class of business.
Excess of retention - Answers - A type of reinsurance in which a ceding company
establishes a dollar amount retention limit and a reinsurer agrees to the same amounts
over this limit, up to the reinsurer's automatic binding limit.
Dodd Frank act - Answers - Passed in 2009, included provisions that created a federal
insurance office (FIO) and the treasury department. It was a mandate to protect the US
financial system from systemic risk presented by financial institutions deemed too big to
fail
Privacy rule - Answers - In the US. Major goal of this legal action is to assure that
individuals health information is properly protected while allowing the flow of health
information needed to provide and promote high-quality healthcare and to protect the
public health and well-being. Addressed the use and disclosure of individuals health
information called "protected health information"
PIPEDA, personal information protection and electronic documents Act - Answers - In
Canada, establish his ground rules for how private sector or organizations can collect,
use or disclose personal information in the course of commercial activities
