Question

What happens if an individual has a high-risk occupation in life insurance underwriting?

a.

The proposal will be accepted without further assessment

b.

The proposal will be declined without further assessment

c.

The proposal will be evaluated and the decision to grant cover will be made based on the nature of the occupation and other factors

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (c).The proposal will be evaluated and the decision to grant cover will be made based on the nature of the occupation and other factors Explanation:When an individual has a high-risk occupation in life insurance underwriting, the proposal will be evaluated, and the decision to grant cover will be made based on the nature of the occupation and other factors. The underwriter will assess the risks associated with the occupation and take into consideration factors such as the level of physical risk involved, the risk of injury or illness, and the frequency of exposure to hazards. The underwriter may also consider the safety measures in place to mitigate these risks, such as safety equipment or training programs. Depending on the evaluation, the underwriter may either accept the proposal or charge a higher premium to cover the additional risk. In some cases, the proposal may be declined.

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