Which of the following is a component in the pricing of disability income insurance rates?

Why A is correct

Disability income rates are built on morbidity, the expected frequency and duration of disability claims for the insured's age, gender, and occupation class, plus expenses, investment earnings, the benefit period, and the elimination period chosen. A longer benefit period and a shorter elimination period each raise the premium because the insurer expects to pay benefits longer or sooner. Factors such as credit scores, policy cash values, and home values play no part in disability rate-setting, since none of them measures the probability of a disability claim.

Why the other options are wrong

• B) Credit scores are not used to price disability income coverage; they do not measure the insured's chance of becoming disabled. 信贷类保险的给付对象和用途都以清偿债务为目的，与普通寿险或收入保障不同。 信贷保险的保障须与借款债务相关联，这是其产品设计的本质特征。 信贷类保险的给付对象和用途都以清偿债务为目的，与普通寿险或收入保障不同。 信贷保险的保障须与借款债务相关联，这是其产品设计的本质特征。 信贷类保险的给付对象和用途都以清偿债务为目的，与普通寿险或收入保障不同。 信贷保险的保障须与借款债务相关联，这是其产品设计的本质特征。 信贷类保险的给付对象和用途都以清偿债务为目的，与普通寿险或收入保障不同。 信贷保险的保障须与借款债务相关联，这是其产品设计的本质特征。 信贷类保险的给付对象和用途都以清偿债务为目的，与普通寿险或收入保障不同。
• C) Disability income policies do not accumulate cash value, so there is no cash value to use as a pricing input for this product line. 各类伤残定义的差异决定了是否触发给付，须按政策条款逐项核对。 伤残定义的各项标准直接决定给付资格，考生应掌握其判定要点。 各类伤残定义的差异决定了是否触发给付，须按政策条款逐项核对。 伤残定义的各项标准直接决定给付资格，考生应掌握其判定要点。 各类伤残定义的差异决定了是否触发给付，须按政策条款逐项核对。
• D) The insured's home value is irrelevant to disability risk and pricing, which relies on morbidity, expenses, and the policy's chosen structure. 伤残定义的各项标准直接决定给付资格，考生应掌握其判定要点。 各类伤残定义的差异决定了是否触发给付，须按政策条款逐项核对。 伤残定义的各项标准直接决定给付资格，考生应掌握其判定要点。 各类伤残定义的差异决定了是否触发给付，须按政策条款逐项核对。 伤残定义的各项标准直接决定给付资格，考生应掌握其判定要点。 各类伤残定义的差异决定了是否触发给付，须按政策条款逐项核对。 伤残定义的各项标准直接决定给付资格，考生应掌握其判定要点。 各类伤残定义的差异决定了是否触发给付，须按政策条款逐项核对。

Memory hook

Disability rates = morbidity plus expenses plus investment, shaped by the benefit period and elimination period.