Assume you are analyzing two separate life annuity pools. Pool A has significantly higher mortality (deaths/thousand) than Pool B. Holding other factors constant, which pool will make higher premium payments per month to the insurer?
a. A
b. B
c. the monthly liquidation payments will be equal
d. we cannot say, because mortality is not an important factor in calculating annuity payments
Answers: 3
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Assume you are analyzing two separate life annuity pools. Pool A has significantly higher mortality...
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