Sep 2020 exam requires us to communicate regarding proposed changes to telemarketing script and its impact on profitability.
Terms such as loss ratio and lapse rate are considered jargon given that audience is sales professional.
My doubt: I used these terms in my answer but clearly explaining what it means.
When a policyholder buys an insurance product but stops paying premiums, the policy lapses. The ratio of lapsed policy to total number of policies is lapse ratio.
Loss ratio is ratio of claims paid out to premiums earned.
I thought these two terms necessary as profitability is impacted due to change in lapse rate and loss ratio.
Will I be penalized for use of jargon, even though I have explained what it means clearly?
In the examiners report, they have used terms such as "policy in force", "claims experience" which are given as jargons in examiners report of previous diets. Sales professional will not know what is claims experience and policies in force but how is it that these terms are included?
Last edited: Mar 26, 2022