LESSON 4: LIFE INSURANCE PREMIUMS, PROCEEDS AND BENEFICIARIES

Section 4.1 Review

The primary factors used as the basis for determining premium costs in life insurance are:

	a)	mortality and interest.
	b)	interest and expenses.
	c)	mortality and expenses.
	d)	mortality, interest and expenses.
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Premium payments can be made:

	a)	annually
	b)	semi-annually
	c)	quarterly
	d)	monthly
	e)	Any of the above
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The formula used to compute the net single premium is Mortality Cost minus Interest. (Mortality Cost - Interest = Net Single Premium)

	a)	True
	b)	False
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The Rating-Up In Age method is no longer used predominantly.

	a)	True
	b)	False
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