Question

How are credit ratings used in risk classification?

a.

To add to the base rating for unfavourable medical factors and deduct for favourable medical factors

b.

To add to the base rating for favourable medical factors and deduct for unfavourable medical factors

c.

To determine the applicant's creditworthiness

d.

To calculate the probability of the applicant experiencing an event that would require insurance coverage

Answer: (a).To add to the base rating for unfavourable medical factors and deduct for favourable medical factors Explanation:Credit ratings are added to the base rating for unfavourable medical factors and deducted for favourable medical factors.

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Q. How are credit ratings used in risk classification?

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