Q. What is adverse selection?

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Q. Which of the following risks associated with an individual is high at the time of initial underwriting but decreases over a period?

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Q. What criteria can an underwriter use to make a decision on accepting a sub-standard risk?

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Q. What are the possible outcomes of the underwriting process?

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Q. In what situation might an insurance company charge extra premium over the standard rate for accepting a sub-standard risk?

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Q. What is the method of charging extra premium for accepting an increasing extra risk?

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Q. Why might it not be fair to charge a level extra premium to an individual throughout the policy term for a decreasing extra risk?

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Q. How is a temporary extra premium charged for a decreasing extra risk?

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Q. How does an insurance company handle sub-standard risk?

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Q. How does an insurance company charge extra premium for the extra risk associated with an individual?

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Q. Why is it difficult to administer an increasing extra premium for increasing risk?

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Q. What is diminishing lien?

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Q. When is a reduced basic sum assured paid in a policy with a diminishing lien?

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Q. How does the amount of debt in a policy with a diminishing lien change over time?

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Q. When does the debt in a policy with a diminishing lien get fully cancelled?

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Q. What happens to the bonuses in a policy with a diminishing lien?

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Q. What happens if death occurs due to accident in a policy with a diminishing lien?

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Q. Why is the method of diminishing lien currently not used in India?

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Q. What is the lien period in a policy with a 25% diminishing lien for 5 years?

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Q. In which method of acceptance does the insurance company restrict the payout of a claim for the full cover under certain conditions?

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