Question

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

a.

Type of risk

b.

Purpose for which insurance cover is sought

c.

Degree or extent of severity of the risk

d.

All of the above

Answer: (d).All of the above Explanation:An underwriter can make a decision on accepting a sub-standard risk based on the type of risk, purpose for which insurance cover is sought, and degree or extent of severity of the risk.

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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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