IFSE Institute LLQP Exam - Topic 1 Question 24 Discussion

Actual exam question for IFSE Institute's LLQP exam

Question #: 24
Topic #: 1

Lara, owner of Huck's Oil Change Ltd., meets with a life insurance agent to discuss a renewal package for the group benefits plan offered to employees. Lara employs 20 individuals, all of whom are covered under the group plan. The employee turnover rate is 10%, and the insurer has rated the group's claims experience credibility at 20%. In establishing the group's premiums under the new plan, how much weight will the insurer give to the standard manual rate for a comparable group?

A10%

B20%

C80%

D90%

Show Suggested Answer

Suggested Answer: C

by Shaun at Jan 05, 2026, 05:16 AM

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Vivienne

5 months ago

I agree, but I’m not sure if it’s high enough. Maybe 90%?

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Solange

5 months ago

I’m leaning towards 80%. It makes sense with the turnover rate.

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Rory

5 months ago

Yeah, I feel like the insurer will lean more on the manual rate.

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Audra

5 months ago

This question is tricky. I think it’s about understanding claims credibility.

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Isabelle

6 months ago

10% turnover, but 20% credibility? Interesting combo!

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Arthur

6 months ago

Totally agree, B is the right choice!

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Margarita

6 months ago

Wait, are we sure about that 20%? Seems low.

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Markus

6 months ago

Definitely going with option B!

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Lawana

6 months ago

The claims experience credibility is 20%.

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Vivan

6 months ago

D) 90% all the way! The insurer will want to play it safe with a small group that has high turnover. Lara better start saving up for those premiums!

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Serita

7 months ago

I'm going with C) 80%. Gotta love these insurance questions - they're like a game of "guess the actuarial formula"!

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Jina

7 months ago

Hmm, I'm torn between B) 20% and C) 80%. This question is really testing our understanding of insurance underwriting principles.

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Sheridan

7 months ago

B) 20% is the correct answer. The insurer will give more weight to the standard manual rate since the group's claims experience credibility is low.

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Sina

8 months ago

D) 90% seems more likely. The insurer will rely heavily on the standard manual rate since the group is small and has a high turnover rate.

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Mendy

8 months ago

I think the answer is C) 80%. The insurer will give more weight to the group's claims experience since it has a credibility rating of 20%.

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Antonio

8 months ago

I keep mixing up the percentages. If the turnover rate is 10%, does that mean the manual rate should be weighted more heavily? I’m leaning towards option D.

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Jacob

8 months ago

We practiced a similar question where the credibility was higher. I feel like 20% is too low to rely on the group's claims experience.

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Jestine

8 months ago

I think the insurer will give more weight to the manual rate since the claims experience is only 20%. Maybe it's option C or D?

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Luisa

8 months ago

I remember something about credibility and how it affects premiums, but I'm not sure how to apply it here.

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Huey

9 months ago

Alright, time to break this down step-by-step. The employee turnover rate and claims experience credibility are important factors, so I'll need to figure out how they impact the weight given to the standard manual rate.

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Miriam

9 months ago

This looks like a straightforward application of insurance rating principles. I'm confident I can work through the calculations and arrive at the right answer.

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Leota

9 months ago

I'm a bit confused by the wording of the question. I'll need to re-read it a few times to make sure I'm understanding the key details correctly before attempting to answer.

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Miesha

9 months ago

Okay, let's think this through. The question is asking about how much weight the insurer will give to the standard manual rate, so I'll need to understand how that factor is calculated.

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Bette

9 months ago

Hmm, this seems like a tricky one. I'll need to carefully consider the factors mentioned, like the employee turnover rate and claims experience credibility.

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Malcolm

3 months ago

I'm leaning towards 20%. It seems reasonable given the context.

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Tammi

3 months ago

I think the claims experience credibility is key here.

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Kenneth

3 months ago

This is definitely tricky! The turnover rate plays a big role.

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