Underwriting Basics Flashcards
(4 cards)
what are the three basic premium factors
mortality rate, expenses, and interest
of the three premium factors, which has the greatest on impact in making one policy priced differently than another
the mortality charge
annual gross premium of a life insurance policy is defined as
net premium plus expense.
premium rates for life insurance are expressed as…
an annual cost per $1000 of face amount. ex. if cost is $12 per $1000, then the annual premium for a $50k policy would by $600 ($12x50)