19. Which of the following statements about mortality and expense charges for group universal life insurance...

19. Which of the following statements about mortality and expense charges for group universal life insurance policies is correct? A. A transaction charge may be levied for withdrawals in early years. B. Monthly charges are set by ERISA at 4.5 percent of premiums. C. Mortality charges for small groups must be experience rated. D. The mortality charge is guaranteed for life.

Solutions

Expert Solution

statement C mortality charges for small groups must be experience rated is CORRECT in all of the other statements

experience rating arrangement with respect to individual employer in a group universal insurance policy is required because the cost of insurance for participating employer is based on the proxy of overall experience ratings

jeff jeffy answered 1 year ago

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