1
ALU 202 EXAM NEWEST 2025/2026 TESTING ACTUAL
EXAM WITH 210 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ (BRAND NEW) GUARANTEED PASS
Underwriting criteria generally used in the pricing of preferred policies include
which of the following?
A. blood pressure
B. cholesterol/HDL ratios
C. family history
Answer Options:
1. B only is correct.
2. C only is correct.
3. A and B only are correct.
4. A, B, and C are correct. - ..(ANSWER)...Answer 4: A, B, and C are correct - page
3.
All the following are life insurance pricing components that are established by
regulation EXCEPT:
1. reserve basis
, 2
2. tax law
3. non-forfeiture laws
4. asset risk - ..(ANSWER)...Answer 4: asset risk - pages 6-7.
The relationship of mortality savings from a requirement to the cost of
administering the requirement is:
1. surplus value
2. protective value
3. business value
4. reserve value - ..(ANSWER)...Answer 2: protective value - page 8.
What are the components considered by the actuary in the pricing of new
products? - ..(ANSWER)...Refer to page 3.
Describe the types of risk that must be covered by the allocated surplus. -
..(ANSWER)...Refer to page 2.
All the following statements regarding a protective value study of underwriting
requirements are correct EXCEPT:
1. It should evaluate which requirement identified the underlying impairment.
, 3
2. It should consider the proposed insured's behavior in accepting or rejecting the
offered policy.
3. It should measure the difference between select and ultimate mortality.
4. It should ensure that the offered product is "at the market." -
..(ANSWER)...Answer 3: It should measure the difference between select and
ultimate mortality—pages 8-9.
A safety net that needs to be provided beyond the level of reserves being held in
case a company's mortality experience turns out to be much worse than expected
is referred to as:
1. risk-based capital
2. reserve basis
3. statutory reserve
4. deferred acquisition cost - ..(ANSWER)...Answer 1: risk-based capital—page 7.
What items are included in the expense levels that are built into product pricing? -
..(ANSWER)...Refer to page 5.
Name four factors that could affect the profitability of a product and explain in
what way profitability could be affected. - ..(ANSWER)...Refer to pages 3-6.
Describe how exceptions can affect the profitability and mortality of a product. -
..(ANSWER)...Refer to page 11.
, 4
For direct carriers, the average percent of premium assigned to cover mortality is:
1. 30%
2. 50%
3. 75%
4. 90% - ..(ANSWER)...Answer 2: 50% - page 20.
Companies will update existing cost benefit studies for which of the following
reasons?
A. changes in pricing
B. competitive landscape
C. actual experience
Answer Options:
1. A only is correct.
2. C only is correct.
3. A and B only are correct.
4. A, B, and C are correct. - ..(ANSWER)...Answer 4: A, B and C are correct - page
19.
ALU 202 EXAM NEWEST 2025/2026 TESTING ACTUAL
EXAM WITH 210 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ (BRAND NEW) GUARANTEED PASS
Underwriting criteria generally used in the pricing of preferred policies include
which of the following?
A. blood pressure
B. cholesterol/HDL ratios
C. family history
Answer Options:
1. B only is correct.
2. C only is correct.
3. A and B only are correct.
4. A, B, and C are correct. - ..(ANSWER)...Answer 4: A, B, and C are correct - page
3.
All the following are life insurance pricing components that are established by
regulation EXCEPT:
1. reserve basis
, 2
2. tax law
3. non-forfeiture laws
4. asset risk - ..(ANSWER)...Answer 4: asset risk - pages 6-7.
The relationship of mortality savings from a requirement to the cost of
administering the requirement is:
1. surplus value
2. protective value
3. business value
4. reserve value - ..(ANSWER)...Answer 2: protective value - page 8.
What are the components considered by the actuary in the pricing of new
products? - ..(ANSWER)...Refer to page 3.
Describe the types of risk that must be covered by the allocated surplus. -
..(ANSWER)...Refer to page 2.
All the following statements regarding a protective value study of underwriting
requirements are correct EXCEPT:
1. It should evaluate which requirement identified the underlying impairment.
, 3
2. It should consider the proposed insured's behavior in accepting or rejecting the
offered policy.
3. It should measure the difference between select and ultimate mortality.
4. It should ensure that the offered product is "at the market." -
..(ANSWER)...Answer 3: It should measure the difference between select and
ultimate mortality—pages 8-9.
A safety net that needs to be provided beyond the level of reserves being held in
case a company's mortality experience turns out to be much worse than expected
is referred to as:
1. risk-based capital
2. reserve basis
3. statutory reserve
4. deferred acquisition cost - ..(ANSWER)...Answer 1: risk-based capital—page 7.
What items are included in the expense levels that are built into product pricing? -
..(ANSWER)...Refer to page 5.
Name four factors that could affect the profitability of a product and explain in
what way profitability could be affected. - ..(ANSWER)...Refer to pages 3-6.
Describe how exceptions can affect the profitability and mortality of a product. -
..(ANSWER)...Refer to page 11.
, 4
For direct carriers, the average percent of premium assigned to cover mortality is:
1. 30%
2. 50%
3. 75%
4. 90% - ..(ANSWER)...Answer 2: 50% - page 20.
Companies will update existing cost benefit studies for which of the following
reasons?
A. changes in pricing
B. competitive landscape
C. actual experience
Answer Options:
1. A only is correct.
2. C only is correct.
3. A and B only are correct.
4. A, B, and C are correct. - ..(ANSWER)...Answer 4: A, B and C are correct - page
19.
