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Why Might the Use of "Grades" Assigned by a Life

Question 3

Multiple Choice
Why might the use of "grades" assigned by a life insurance company rating organization not be a reliable guide for consumers?
I.There may be variations in grades given by different rating organizations.
II.They ignore factors such as profitability and quality of investments.

Why might the use of "grades" assigned by a life insurance company rating organization not be a reliable guide for consumers?
I.There may be variations in grades given by different rating organizations.
II.They ignore factors such as profitability and quality of investments.


A) I only
B) II only
C) both I and II
D) neither I nor II

Correct Answer:

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