Question

How do underwriters make a numerical or percentage assessment of risk for each phase?

a.

By deducting credit ratings from the base rating for favourable attributes and adding credit ratings for unfavourable attributes

b.

By calculating the extra mortality rating equivalent to the percentage total mortality of the group in which that particular proposer has been classified

c.

By ascertaining the medical history of the family members of the applicant

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (a).By deducting credit ratings from the base rating for favourable attributes and adding credit ratings for unfavourable attributes Explanation:Underwriters make a numerical or percentage assessment of risk for each phase by deducting credit ratings from the base rating for favourable attributes and adding credit ratings for unfavourable attributes.

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Q. How do underwriters make a numerical or percentage assessment of risk for each phase?
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