Final answer:
The incorrect aspect regarding a 100,000 20 year level term policy likely involves the calculation of actuarially fair premiums or a misunderstanding of insurance risk pooling, particularly for different risk groups based on factors such as family history of cancer.
Step-by-step explanation:
The question which of the following is incorrect regarding 100,000 20 year level term policy could refer to a variety of issues depending on the context provided. However, based on the information given, which relates to life insurance and the assessment of premiums, we can focus on the actuarial aspects of a 20-year level term policy. Specifically, it sounds like the question may concern the calculation of actuarially fair premiums for life insurance for two different groups of 50-year-old men, one with and one without a family history of cancer.
For a 20-year level term policy, the insurers would set the premium such that it remains constant throughout the term. Determining the 'incorrect' aspect could involve a misunderstanding of how premiums are calculated for different risk groups, or it may be related to the principles of insurance risk pooling. An incorrect statement could be that the insurer charges the same premium regardless of risk, which isn't actuarially sound due to the different risk profiles of the groups mentioned.
It’s critical to engage with the specific details provided about mortality rates and family history to establish the error. Without a clear statement to identify as incorrect, we must rely on the insurance principles to answer appropriately.