Which of these factors helps determine an insured's life insurance premium?

• A. avocation (hobby)
• B. eye color
• C. favorite color
• D. nationality

Answer: (A)

Underwriting prices life insurance by evaluating lifestyle risk. A person’s avocation, or hobby, matters because certain activities signal higher exposure to injury or death. If someone engages in risky pursuits—like extreme sports or hazardous occupations—the insurer may raise the premium to reflect that added risk. Eye color and favorite color don’t correlate with life expectancy, and nationality is generally not used in pricing due to fairness and legal protections, so they don’t influence premiums. Avocation is the factor that directly relates to the level of risk the insurer is taking.