Life Underwriting, Application & Policy Provisions question: insurer offers coverage at table

LifeUnderwriting, Application & Policy Provisions

Thierry, 46, has poorly controlled diabetes. His standard premium for a $250,000 term policy would be $800 a year. The insurer offers coverage at table 4, and its rating tables add 25% of the standard premium per table. What annual premium will Thierry pay?

A $800
B $1,000
C $1,600
D $3,200

Show the answer and explanation

Answer: C. $1,600

Table 4 at 25% per table adds 4 × 25% = 100% of the standard premium: $800 + $800 = $1,600. $1,000 applies only one table, $3,200 multiplies the premium by 4, and $800 is the standard premium with no rating. A table rating lets the insurer accept a higher-than-average mortality risk at a higher premium instead of declining it. Source: CISRO LLQP Curriculum (May 2015; current as at 12 Oct 2026), Life component 3.1 (substandard risks and rated policies; factors that may increase premium rates: health); 25% per table is common industry practice (as at 12 Oct 2026).

Common mistake

Multiplying the premium by the table number instead of adding a percentage per table.

Practice more Life Underwriting, Application & Policy Provisions questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practicing →

Study note: Underwriting, Application & Policy Provisions Lifepractice questions & mock exams

Related Life practice questions

During a policy review, Teresa's agent notices that her 20-year term application gave her age as 35, but her passport shows she was 38. She pays $600 a year for $150,000, based on the age-35 rate of $4.00 per $1,000; the age-38 rate was $4.80. The contract follows the statutory rule. What death benefit does the policy now provide?Brigid's application stated she was 52, and she has paid $1,200 a year for a $100,000 policy at the age-52 rate of $12 per $1,000. After her death the insurer finds she was actually 50 when she applied, when the rate was $10 per $1,000. The contract has no age limit issue. What death benefit is payable?Farid, 39, earns $70,000 a year and has group life equal to twice his salary, plus $60,000 of non-registered savings. If he dies, his wife Leila, who nets $30,000 a year, needs $48,000 a year after tax for the family. Other needs: final expenses $25,000, mortgage $310,000, other debts $18,000 and an education fund of $80,000. Capital earns 4% and only the income is spent. How much additional coverage does Farid need?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practicing →

Original study material mapped to the public CISRO curriculum; not a real test question.Not affiliated with CISRO, CCIR or any provincial insurance regulator. Verify figures and rules against current guidance before relying on them.