The risk-based capital formula developed by the National Association of Insurance Commissioners (NAIC) help insurance providers to assess the risk inherent in an insurer’s contractual obligations and asset portfolio. The risks in the C-2 category (C-2 risk) arise from the likelihood of inappropriate pricing. The purpose of this study is to examine the effects of death improvement on the mispricing risk. Simulations were conducted on three portfolios of 1,000 lives, 10,000 lives, and 100,000 lives respectively, with each life subjected each year to specific mortality and lapse rates. The models also considered the death dividends. The risk factors for the simulations were targeted at the 95% confidence level. The result indicates that with death improvement, insurance companies suffer lower mispricing risks from term, endowment, whole life polices as well as from whole life with survival benefit policies, yet they are likely to suffer a higher risk from pure endowment insurances.