Question

What does it mean to accept the risk with exclusion in insurance?

a.

The insurer will not be liable to make any payment for a specific risk

b.

The insurer will only pay a reduced amount in the event of a claim

c.

The policy will only be valid for a limited period of time

d.

The insurer will provide coverage for all risks associated with the individual

Posted under IC22 Life Insurance Underwriting

Answer: (a).The insurer will not be liable to make any payment for a specific risk Explanation:When the insurer accepts the risk with exclusion, it means that they will not be liable to make any payment for a specific risk that is excluded from the policy. For example, if a person has a pre-existing medical condition that is excluded from their health insurance policy, the insurer will not be responsible for paying any claims related to that particular condition. This allows the insurer to offer coverage to individuals who may have a higher risk of making a claim while still managing their overall risk.

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Q. What does it mean to accept the risk with exclusion in insurance?
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