Question

What is the purpose of a credit rating in underwriting?

a.

To reduce the mortality rating for favourable factors.

b.

To increase the mortality rating for unfavourable factors.

c.

To increase the mortality rating for favourable factors.

d.

To reduce the mortality rating for unfavourable factors.

Posted under IC22 Life Insurance Underwriting

Answer: (b).To increase the mortality rating for unfavourable factors. Explanation:A credit rating will be added to the base rating of 100 to unfavourable factors such as high blood pressure or diabetes.

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