Which of the following changes would tend to increase the premium on a disability policy?
A) A shorter elimination period
B) Use of "any occupation" definition of disability instead of "own occupation to which one is reasonably suited"
C) Decreasing the benefit level to 50% from 66% of prior earnings
D) Decreasing the payment period from until age 65 to a maximum of 2 years
E) None of the above would tend to increase the premium

Question

Quizplus · Accepted Answer

A shorter elimination period increases the premium because the insurer starts paying benefits sooner, increasing the likelihood and duration of payouts.

Which of the Following Changes Would Tend to Increase the Premium