ALU 202 Chapter 2
"Sentinel Effect" - ANS-Deters proposed insured's with known or suspected impairments or
bizarre lab findings from making use of for coverage. Or causes them to use for amounts below
requirement threshold limits.
Break Even Amount of Insurance - ANS-Amount at which the boom in mortality charges
anticipated from now not acquiring an underwriting requirement is counterbalanced by using the
corresponding reduction in underwriting charges.
Cost-Benefit Studies - ANS-Provide goal proof needed to examine the value-effectiveness of
underwriting requirements and the underwriting procedure.
Define "damage-even" quantity. - ANS-The quantity wherein the boom in mortality cost from
now not acquiring underwriting requirement is counterbalanced by the corresponding discount in
underwriting
Essential Items to Record for Cost-Benefit Study - ANS-File wide variety,Gender, Age, Tobacco
reputation, coverage face amount, kind of requirements under study, motive for ordering
requirements, Additional necessities that may be precipitated by way of the primary
requirement, Cost of necessities, final motion without necessities, very last action with
necessities, shielding price of requirements
Estimating Cost-Benefit or Cost-Effectiveness of Requirements (specific techniques) - ANS-A -
Determine percentage of requirements main to negative motion
B - Determine average percentage of more mortality exposed consistent with requirement
C - Estimate greenback value of safety consistent with greenback spent on requirement if
entirely accountable for damaging motion.
D - Estimate internet financial savings of requirement through subtracting their price from their
value.
E - Estimate cost of requirements used in underwriting supplemental advantages/riders.
(Only B-D(perhaps e) is beneficial in determining wreck-even amounts of coverage)
Factor to bear in mind whilst Comparing Underwriting requirements among peer agencies, -
ANS-Target Market, morality expectations, distribution machine, products marketed, manual
uses, mortality & expense expectancies, enjoy monitoring competencies, underwriting
skillability, underwriting philosophy.
Factors to recall whilst evaluating underwriting necessities among peer life insurance
organizations encompass all of the following - ANS-target market, morality expectancies,
distribution machine. Not taken into consideration to the size of the corporation
"Sentinel Effect" - ANS-Deters proposed insured's with known or suspected impairments or
bizarre lab findings from making use of for coverage. Or causes them to use for amounts below
requirement threshold limits.
Break Even Amount of Insurance - ANS-Amount at which the boom in mortality charges
anticipated from now not acquiring an underwriting requirement is counterbalanced by using the
corresponding reduction in underwriting charges.
Cost-Benefit Studies - ANS-Provide goal proof needed to examine the value-effectiveness of
underwriting requirements and the underwriting procedure.
Define "damage-even" quantity. - ANS-The quantity wherein the boom in mortality cost from
now not acquiring underwriting requirement is counterbalanced by the corresponding discount in
underwriting
Essential Items to Record for Cost-Benefit Study - ANS-File wide variety,Gender, Age, Tobacco
reputation, coverage face amount, kind of requirements under study, motive for ordering
requirements, Additional necessities that may be precipitated by way of the primary
requirement, Cost of necessities, final motion without necessities, very last action with
necessities, shielding price of requirements
Estimating Cost-Benefit or Cost-Effectiveness of Requirements (specific techniques) - ANS-A -
Determine percentage of requirements main to negative motion
B - Determine average percentage of more mortality exposed consistent with requirement
C - Estimate greenback value of safety consistent with greenback spent on requirement if
entirely accountable for damaging motion.
D - Estimate internet financial savings of requirement through subtracting their price from their
value.
E - Estimate cost of requirements used in underwriting supplemental advantages/riders.
(Only B-D(perhaps e) is beneficial in determining wreck-even amounts of coverage)
Factor to bear in mind whilst Comparing Underwriting requirements among peer agencies, -
ANS-Target Market, morality expectations, distribution machine, products marketed, manual
uses, mortality & expense expectancies, enjoy monitoring competencies, underwriting
skillability, underwriting philosophy.
Factors to recall whilst evaluating underwriting necessities among peer life insurance
organizations encompass all of the following - ANS-target market, morality expectancies,
distribution machine. Not taken into consideration to the size of the corporation
