Question

What factors do underwriters consider when assessing the risk associated with an individual?

a.

Mortality and morbidity rates

b.

Personal judgment and bias

c.

Company guidelines and policies

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (a).Mortality and morbidity rates Explanation:When assessing the risk associated with an individual, underwriters consider factors based on mortality and morbidity rates. These rates help insurance companies estimate the likelihood of an individual becoming ill or dying based on their age, gender, occupation, lifestyle, and other factors. Underwriters evaluate whether the risk associated with an individual can be accepted at standard rates or not based on these factors. Personal judgment and bias should not influence the decision of underwriters, and their decisions must be backed by adequate rationale and supporting documentation. Ultimately, the company guidelines and policies must be followed, and rationalized decisions should be made.

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Q. What factors do underwriters consider when assessing the risk associated with an individual?
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