Which term describes a person who compiles statistics to assess insurance risks and determine premiums?

Which term describes a person who compiles statistics to assess insurance risks and determine premiums?

• A. Actuary
• B. Presentiment
• C. Verbiage
• D. Lugubrious

Answer: (A)

A term for a professional who uses statistics to evaluate insurance risk and set premiums. An actuary builds models from data—mortality and morbidity rates, lapse rates, and interest assumptions—to estimate future costs and determine how much to charge policyholders. This blends math, statistics, and financial theory to keep insurers financially sound while pricing risk appropriately. The other words describe something else—presentiment is a foretelling feeling, verbiage means excessive wording, and lugubrious means mournful—so they don’t fit as a job title in insurance risk assessment.

A term for a professional who uses statistics to evaluate insurance risk and set premiums. An actuary builds models from data—mortality and morbidity rates, lapse rates, and interest assumptions—to estimate future costs and determine how much to charge policyholders. This blends math, statistics, and financial theory to keep insurers financially sound while pricing risk appropriately. The other words describe something else—presentiment is a foretelling feeling, verbiage means excessive wording, and lugubrious means mournful—so they don’t fit as a job title in insurance risk assessment.