What is "an actuarial table" used for in insurance?

An actuarial table is a crucial tool used in the insurance industry primarily for assessing risk and calculating premiums. It does this by providing statistical data on various life events, mortality rates, and other relevant factors that contribute to the likelihood of loss. By analyzing these probabilities, insurers can evaluate the risk associated with insuring a particular individual or entity, which allows them to set appropriate premium rates.

Through the use of actuarial tables, an insurer can make informed decisions about how much to charge for coverage based on the expected loss they might face. This ensures that premiums are adequately aligned with the risk, ultimately allowing insurers to maintain financial stability while providing coverage to policyholders.

The other choices relate to different aspects of insurance practice, such as property valuation, coverage limits, and customer service standards, but they do not pertain to the specific function of actuarial tables in risk assessment and premium calculation.