Question
a.
A level extra premium is charged that remains the same throughout the policy term
b.
An average of the extra premium is made applicable to all lives
c.
An individual's health condition is monitored throughout the policy term
d.
None of the above
Posted under IC22 Life Insurance Underwriting
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. What is the method of charging extra premium for accepting an increasing extra risk?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
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?
View solution
Q. How is a temporary extra premium charged for a decreasing extra risk?
View solution
Q. How does an insurance company handle sub-standard risk?
View solution
Q. How does an insurance company charge extra premium for the extra risk associated with an individual?
View solution
Q. Why is it difficult to administer an increasing extra premium for increasing risk?
View solution
Q. What is diminishing lien?
View solution
Q. When is a reduced basic sum assured paid in a policy with a diminishing lien?
View solution
Q. How does the amount of debt in a policy with a diminishing lien change over time?
View solution
Q. When does the debt in a policy with a diminishing lien get fully cancelled?
View solution
Q. What happens to the bonuses in a policy with a diminishing lien?
View solution
Q. What happens if death occurs due to accident in a policy with a diminishing lien?
View solution
Q. Why is the method of diminishing lien currently not used in India?
View solution
Q. What is the lien period in a policy with a 25% diminishing lien for 5 years?
View solution
Q. In which method of acceptance does the insurance company restrict the payout of a claim for the full cover under certain conditions?
View solution
Q. What is the purpose of the specific exclusion clause in an insurance policy?
View solution
Q. If the insured dies due to a condition that has been excluded from the policy, what does the insurance company do?
View solution
Q. What could be the consequence of issuing policies with specific exclusions and assigning them to mortgage loans?
View solution
Q. In which scenario would an insurance company not pay any claim if the person dies in an air-crash?
View solution
Q. What is the Postponement of acceptance of risk in the insurance industry?
View solution
Q. In what scenario can an underwriter take a decision to postpone a proposal?
View solution
Recommended Subjects
Are you eager to expand your knowledge beyond IC22 Life Insurance Underwriting? We've handpicked a range of related categories that you might find intriguing.
Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!
