Question

How can an insurance company mitigate morbidity risk for an individual with a high risk of illness?

a.

Exclude critical illness from the policy and only grant base cover with or without an appropriate loading

b.

Grant full coverage with no modifications

c.

Decline coverage altogether

d.

Increase premiums for all customers to cover the potential risk

Posted under IC22 Life Insurance Underwriting

Answer: (a).Exclude critical illness from the policy and only grant base cover with or without an appropriate loading Explanation:An insurance company can mitigate morbidity risk for an individual with a high risk of illness by excluding critical illness from the policy and only granting base cover with or without an appropriate loading. This means that the insurance company will only provide coverage for basic medical expenses and exclude coverage for more serious or expensive illnesses, which can help reduce their potential risk.

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Q. How can an insurance company mitigate morbidity risk for an individual with a high risk of illness?
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