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Commerce · Q475

Insurance

Graduate and Post Graduate · Commerce · question 475

Q475

Under risk classification, _________ consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table.

A.
Standard lives
Answer
B.
Preferred risks
C.
Sub-standard lives
D.
Declined lives

Answer: Option A

Solution

Answer: Option A
Solution:
Under risk classification, Standard lives consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table. Mortality tables are the most important basis for charging the premium.