QuestionJune 17, 2025

Which of these factors would an insurer consider when determining whether to accept a group life plan? A. Grace period B. Average age C. Number of dependents D. Incontestable period

Which of these factors would an insurer consider when determining whether to accept a group life plan? A. Grace period B. Average age C. Number of dependents D. Incontestable period
Which of these factors would an insurer consider when determining whether to accept a group life plan?
A. Grace period
B. Average age
C. Number of dependents
D. Incontestable period

Solution
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Answer

B. Average age Explanation 1. Identify Relevant Factors Insurers consider factors that affect risk and cost, such as demographics and group characteristics. 2. Evaluate Options A. Grace period and D. Incontestable period are policy terms, not risk factors. B. Average age affects mortality risk and premium calculations. C. Number of dependents is less relevant for group acceptance.

Explanation

1. Identify Relevant Factors<br /> Insurers consider factors that affect risk and cost, such as demographics and group characteristics.<br /><br />2. Evaluate Options<br /> A. Grace period and D. Incontestable period are policy terms, not risk factors.<br /> B. Average age affects mortality risk and premium calculations.<br /> C. Number of dependents is less relevant for group acceptance.
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