mortality factor. Insurance. In life-insurance ratemaking, an estimate of the average number of deaths that will occur each year at each specific age, calculated by using an actuarial table. • The mortality factor is one element that a life insurer uses to calculate premium rates. See ACTUARIAL TABLE; PREMIUM RATE. Cf. INTEREST FACTOR; RISK FACTOR. […]
risk factor. Insurance. In life-insurance ratemaking, the estimated cost of present and future claims, based on a mortality table. • The risk factor is one element that a life insurer uses to calculate premium rates. See PREMIUM RATE . Cf. INTEREST FACTOR; MORTALITY FACTOR. [Cases: Insurance 1542. C.J.S. Insurance § 67.]
interest factor. Insurance. In life-insurance ratemaking, an estimate of the interest or rate of return that the insurer will earn on premium payments over the life of a policy. • The interest factor is one element that a life insurer uses to calculate premium rates. See PREMIUM RATE; gross premium (1) under PREMIUM(1). Cf. MORTALITY
premium rate. Insurance. The price per unit of life insurance. • It is usu. expressed as a cost per thousands of dollars of coverage. Life insurers use three factors — the interest factor, the mortality factor, and the risk factor — to calculate premium rates. — Sometimes shortened to rate. See INTEREST FACTOR; MORTALITY FACTOR;