When pricing its product, the Panda Health Plan assumes a 4% interest rate on its...

AHIP AHM-520 Question Answer

When pricing its product, the Panda Health Plan assumes a 4% interest rate on its investments. Panda also assumes a crediting interest rate of 4%.

The actual interest rate earned by Panda on the assets supporting its product is 6%. The following statements can correctly be made about the investment margin and interest margin for Panda's products.

Panda most likely built the crediting interest rate of 4% into the investment margin of its product.

Panda's investment margin is the difference between its actual benefit costs and the benefit costs that it assumes in its pricing.

The interest margin for this product is 2%.

All of these statements are correct.

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AHIP AHM-520 Summary

Vendor: AHIP
Product: AHM-520
Update on: Jan 2, 2026
Questions: 215

Price: $52.5 ~~$149.99~~

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When pricing its product, the Panda Health Plan assumes a 4% interest rate on its...

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