Which term refers to the insured's age at renewal or replacement?

Which term refers to the insured's age at renewal or replacement?

• A. Attained age
• B. Insured age
• C. Issue age
• D. Policy age

Answer: (A)

The main concept is how age is used to adjust premiums at renewal. Attained age is the age the insured has actually reached on the renewal or replacement date, and it’s this age that the insurer uses to recalculate the premium. As a person ages, the risk to the insurer typically increases, so the premium often rises at each renewal based on attained age. This differs from the age at issue, which is the age when the policy was first issued and used to set the initial premium but doesn’t change with every birthday. So, when a policy is renewed or replaced, the relevant measure is attained age.

The main concept is how age is used to adjust premiums at renewal. Attained age is the age the insured has actually reached on the renewal or replacement date, and it’s this age that the insurer uses to recalculate the premium. As a person ages, the risk to the insurer typically increases, so the premium often rises at each renewal based on attained age. This differs from the age at issue, which is the age when the policy was first issued and used to set the initial premium but doesn’t change with every birthday. So, when a policy is renewed or replaced, the relevant measure is attained age.