Which of the following is NOT used in determining life insurance rates?

In the context of life insurance rate determination, policy reserves are not directly used to determine the premium rates for insurance policies. Instead, policy reserves represent the funds that an insurance company must hold to pay future policyholder claims. These reserves are calculated based on various factors, including mortality rates and interest earnings, but they do not influence the pricing of premiums directly.

The calculation of life insurance rates primarily involves the assessment of mortality expenses, which relate to the expected lifespan of insured individuals, investment and interest returns that the insurer anticipates earning on premiums before claims are paid, and the company's operational expenses that it incurs while managing the policies. All these factors play an essential role in determining how much premium needs to be collected to ensure the insurer can meet its future liabilities. In contrast, policy reserves are a separate consideration focused on financial stability rather than premium calculation.