Q. How is an individual categorized if their assessment value is more than 125% in the risk classification process?

View solution

Q. What does an individual having an extra mortality rating of 100% imply?

View solution

Q. What is the combined effect of unfavourable factors in the risk classification process?

View solution

Q. How is the total credit rating for extra mortality calculated for an individual with multiple unfavourable factors?

View solution

Q. What is the "combination factor" in underwriting?

View solution

Q. What are some advantages of the numerical rating system in underwriting?

View solution

Q. Why is charging a level extra premium for substandard lives throughout the term of the policy contract considered unfair for some individuals?

View solution

Q. What is a temporary extra in the context of the numerical rating system?

View solution

Q. What is a limitation of the numerical rating system?

View solution

Q. How does an individual's occupation impact their risk profile?

View solution

Q. Which of the following is an example of how an occupation can impact an individual's risk profile?

View solution

Q. What does an underwriter need to review when assessing the risk of an individual's occupation?

View solution

Q. What is the impact of traveling to foreign countries on an individual's underwriting decision?

View solution

Q. In the numerical rating method, which of the following factors is assessed for risk evaluation?

View solution

Q. What is the underwriter's role in assessing the insurance cover applied for by the client?

View solution

Q. What is "moral hazard" in insurance underwriting?

View solution

Q. What is taken into account when looking at the financial aspects of the applicant's insurance application?

View solution

Q. What are the documents necessary for risk selection?

View solution

Q. What does the underwriter do after assessing extra mortality rates?

View solution

Q. What is an underwriter's decision when accepting a sub-standard risk?

View solution