Julietn528
09-30-2008, 05:44 PM
In the solution, the total volume coverage for life is 115500000 which is annual. Shouldn't this amount be divided by 12 to get the monthly claim rate? B/c you are using this number to divide by the expected monthly claims?
This was done in the LTD montly claim rate section b/c the total volume coverage =
115500000/12 *.7 = 6737500
Thus the Life answer and the LTD answer are inconsistent.
Also, do you not need to use the Current LTD reserves of 4,500,000 at all? Or does that need to be factored in when you calculate the actual monthly claim rate?
This was done in the LTD montly claim rate section b/c the total volume coverage =
115500000/12 *.7 = 6737500
Thus the Life answer and the LTD answer are inconsistent.
Also, do you not need to use the Current LTD reserves of 4,500,000 at all? Or does that need to be factored in when you calculate the actual monthly claim rate?