Which of the following statements diminishing the value of published comparative measures relative to life...
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Finance
Which of the following statements diminishing the value of published comparative measures relative to life insurance companies are true? For the one(s) that are true, please respond as to why they are important to the insurer and/or the insured.
The typical company has several portfolios of investments, each selected to support one or more specific classes of business.
For companies whose product pricing is based on the new money available for investment, the aggregate portfolio rate of return may not be indicative of the rate of return for different classes of business.
A companys financial statements indication of net mortality costs is not informative unless the companys distribution of business by risk class is known.
Expense ratios can provide a general insight as to a companys expense experience, but comparing two companies would be meaningful only if the companies had similar portfolios of policies in force.
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