What does a mortality pool refer to in insurance terms?

A mortality pool in insurance refers to the concept of assessing risk based on the statistical likelihood of individuals dying within a given time frame, typically a year. This pool is formed from a group of insured individuals, where insurers use mortality tables to estimate the number of expected deaths.

In practical application, the mortality pool allows insurance companies to determine premiums and manage their resources effectively, as they can anticipate claims based on the predicted number of deaths among the pool participants. The calculations rely on broad statistical trends rather than isolated incidents, providing a foundation for underwriting life insurance policies.

The other options may relate to aspects of insurance but do not accurately capture the definition of a mortality pool. For example, while the first option pertains to risk takers, it does not address mortality specifically. The third option discusses income, which does not relate to mortality, and the fourth concerns the assets of an insurance company, which is separate from the life expectancy statistics that define a mortality pool.