Question

What are rating guides and manuals used for in the insurance industry?

a.

To assess the profitability of an insurance company

b.

To determine the level of risk associated with an applicant

c.

To establish standard rates for insurance premiums

d.

To provide legal guidelines for the insurance industry

Posted under IC22 Life Insurance Underwriting

Answer: (b).To determine the level of risk associated with an applicant Explanation:Rating guides and manuals are used to assess the risk-profile of an applicant and to determine the level of risk associated with insuring them.

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Q. What are rating guides and manuals used for in the insurance industry?
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