Utah Life Producer Practice Exam

The function of a mortality table is primarily to estimate life expectancy and the likelihood of death at various ages. These tables are statistical tools used by actuaries and insurance companies to predict how long individuals of different ages are expected to live, which is crucial for underwriting life insurance policies.

By analyzing historical data on death rates, mortality tables allow insurers to assess the risk associated with issuing life insurance and to set premiums accordingly. The information derived from these tables helps determine how long a policy might remain active before a payout is needed. Consequently, the use of mortality tables aids in maintaining the financial stability of insurance companies and ensuring that they have sufficient resources to pay out claims as they arise.

In this context, the other options do not accurately define the primary purpose of a mortality table. While policyholder premiums may be influenced by the data from mortality tables, the tables themselves do not calculate premiums directly. Determining the terms of a policy and measuring customer satisfaction are unrelated functions that do not involve mortality statistics.