New York State Life Insurance Exam Questions Practice Question
All of the following factors are used in life insurance premium determination EXCEPT
Correct Answer: B
Rationale: In life insurance premium determination, several key factors are considered.
- **Expense** (A) reflects the costs incurred by the insurer, including administrative and operational expenses, which directly influence premium rates.
- **Mortality** (C) pertains to the likelihood of death within a specific period, impacting the insurer's risk assessment and premium calculations.
- **Interest** (D) relates to the investment income generated from premiums, affecting how much needs to be charged to maintain profitability.
**Morbidity** (B), however, is primarily associated with health insurance and the likelihood of illness, not life insurance. Thus, it does not play a role in determining life insurance premiums.
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