Question

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

a) Number of dependents
b) Incontestable period
c) Average age
d) Grace period

Answer 1

An insurer considers factors such as number of dependents, incontestable period, average age, and grace period when determining whether to accept a group life plan.

Step-by-step explanation:

An insurer considers several factors when determining whether to accept a group life plan:

1. Number of dependents: This factor helps determine the level of financial risk for the insurer. More dependents mean potentially higher claims.
2. Incontestable period: This refers to a period of time during which a claim cannot be contested by the insurer. It helps protect the insured and affects the risk for the insurer.
3. Average age: The average age of the group can impact the risk of mortality and potential claims.
4. Grace period: This is the period after a premium payment is due, during which the policy remains in force. It affects the administrative and financial aspects of the plan.