Chapter 21: Mortality and morbidity Flashcards Preview

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Flashcards in Chapter 21: Mortality and morbidity Deck (9)
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1
Q

Selection/anti-selection or adverse selection

A

taking advantage of inefficiencies in a provider’s pricing basis to secure better terms than might otherwise be justified, normally at the expense of the product provider

2
Q

limit the extent to which rating factors can be used

A
  • the ability of prospective policyholders to provide accurate responses to questions
  • the cost of collecting information
3
Q

Factors by which mortality and morbidity vary

A
  • occupation
  • nutrition
  • housing
  • climate/geography
  • education
  • genetics
  • HIV status
4
Q

Temporary initial selection

A

Where the level of risk diminished or increases since the occurrence of a selection process.

5
Q

Class selection

A

Where a select group is taken from a population consisting of a mixture of different types of individual with different characteristics

6
Q

Time selection

A

Where a select group is taken from a population of individuals from different calendar years

7
Q

Adverse selection

A

Where the individual’s own choice influences the composition of a select group

8
Q

Spurious selection

A

Where the distorting effect of a confounding factor gives the false impression that one of the forms of selection is present

9
Q

Decrements and a selective effect

A

Decrements may be found to have a selective effect. A selective decrement will ‘select’ from the population lives whose rate of decrement from another cause differs from that of the whole population.