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2. Which of the following changes would tend to increase the premium on a disability policy? a. a shorter elimination period

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Answer #1

Insurance premiums and elimination periods have an inverse relationship. The shorter the elimination period, the higher the premium will be; the longer the elimination period, the lower the premium will be. When making a decision about the length of elimination period to choose, it is important for the policy holder to consider his ability to pay for care expenses.

The option is a shorter elimination period.

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