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04 Dec 2006, 02:31
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The board of Premeier Life Insurance Company is discussiong a proposal for a new policy that would cover services required by snior citizens suffering from old age afllictions. It is felt that the annual premium for this new policy designed for senior citizens, must be low enough to attract customers. Therefore the board of Premier Life Insurance company feels that the expected premium income may not suffice to pay the anticipated claims that would be made.
Which of the following strategies are most likely to keep Premier Life Insurance Company's losses on the policies to the least?
1. Attracting customers who are presently in their middle age and who are unlikely to submit claims for benefits for many years.
2. Insuring only those persons who have had a healthy childhood.
3. Covering a greater number of services in the policy than are included in other policies of lower cost issued by the other players in the life insurance market.
4. Insuring only those persons who are capable of paying for the medical services that they may need.
5. Insuring only those perosns who were not considered by other life insurance ocmpanies for similar policies.
Which of the following strategies are most likely to keep Premier Life Insurance Company's losses on the policies to the least?
1. Attracting customers who are presently in their middle age and who are unlikely to submit claims for benefits for many years.
2. Insuring only those persons who have had a healthy childhood.
3. Covering a greater number of services in the policy than are included in other policies of lower cost issued by the other players in the life insurance market.
4. Insuring only those persons who are capable of paying for the medical services that they may need.
5. Insuring only those perosns who were not considered by other life insurance ocmpanies for similar policies.
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04 Dec 2006, 03:39
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The board of Premeier Life Insurance Company is discussiong a proposal for a new policy that would cover services required by snior citizens suffering from old age afllictions. It is felt that the annual premium for this new policy designed for senior citizens, must be low enough to attract customers. Therefore the board of Premier Life Insurance company feels that the expected premium income may not suffice to pay the anticipated claims that would be made.
Which of the following strategies are most likely to keep Premier Life Insurance Company's losses on the policies to the least?
1. Attracting customers who are presently in their middle age and who are unlikely to submit claims for benefits for many years.
Then only middle aged customers will keep paying till they are old and provide profits to insurance company.
2. Insuring only those persons who have had a healthy childhood.
3. Covering a greater number of services in the policy than are included in other policies of lower cost issued by the other players in the life insurance market.
4. Insuring only those persons who are capable of paying for the medical services that they may need.
5. Insuring only those perosns who were not considered by other life insurance ocmpanies for similar policies.
Which of the following strategies are most likely to keep Premier Life Insurance Company's losses on the policies to the least?
1. Attracting customers who are presently in their middle age and who are unlikely to submit claims for benefits for many years.
Then only middle aged customers will keep paying till they are old and provide profits to insurance company.
2. Insuring only those persons who have had a healthy childhood.
3. Covering a greater number of services in the policy than are included in other policies of lower cost issued by the other players in the life insurance market.
4. Insuring only those persons who are capable of paying for the medical services that they may need.
5. Insuring only those perosns who were not considered by other life insurance ocmpanies for similar policies.
