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IFSE Institute LLQP Exam - Topic 1 Question 24 Discussion

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?
C) 80%
A) 10%
B) 20%
D) 90%

IFSE Institute LLQP Exam - Topic 1 Question 24 Discussion

Actual exam question for IFSE Institute's LLQP exam
Question #: 24
Topic #: 1
[All LLQP Questions]

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?

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Suggested Answer: C

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

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Vivienne
2 months ago
I agree, but I’m not sure if it’s high enough. Maybe 90%?
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Solange
2 months ago
I’m leaning towards 80%. It makes sense with the turnover rate.
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Rory
2 months ago
Yeah, I feel like the insurer will lean more on the manual rate.
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Audra
2 months ago
This question is tricky. I think it’s about understanding claims credibility.
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Isabelle
2 months ago
10% turnover, but 20% credibility? Interesting combo!
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Arthur
3 months ago
Totally agree, B is the right choice!
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Margarita
3 months ago
Wait, are we sure about that 20%? Seems low.
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Markus
3 months ago
Definitely going with option B!
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Lawana
3 months ago
The claims experience credibility is 20%.
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Vivan
3 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
4 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
4 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
4 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
5 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
5 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
5 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
5 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
5 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
5 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
6 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
6 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
6 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
6 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
6 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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Tammi
3 days ago
I think the claims experience credibility is key here.
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Kenneth
8 days ago
This is definitely tricky! The turnover rate plays a big role.
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