Dani asks her financial advisor how insurance companies calculate their premiumsWhich of the following statements is FALSE?

The mortality cost for the year that a policy is in effect reflects the probability of death in the year for the life insured considering such factors as age, smoking habits, health and lifestyle

As a result of anti-discrimination laws, insurance companies are not allowed to consider the effect of gender on mortality rates when setting their insurance premiums

Insurers calculate the mortality cost as the death benefit multiplied by the probability of death in the year Insurance companies base the gross premiums for their life insurance products on three factors: the

mortality cost plus their operating margins less investment income