Question

What is the rationale behind requiring underwriting decisions to be backed by supporting documentation?

a.

To prevent bias and ensure consistency

b.

To increase profits for the insurance company

c.

To avoid legal action from the insured individual

d.

To make the underwriting process more efficient

Posted under IC22 Life Insurance Underwriting

Answer: (a).To prevent bias and ensure consistency Explanation:By requiring underwriting decisions to be backed by supporting documentation, it helps to prevent bias and ensure consistency in the decision-making process. This is important to ensure that all individuals are assessed fairly and objectively based on their level of risk. It also helps to provide a clear record of the decision-making process in case of any disputes or legal action in the future.

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