Question

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

a.

Personal factors

b.

Environmental factors

c.

Hereditary factors

d.

All ofthe above

Posted under IC22 Life Insurance Underwriting

Answer: (d).All ofthe above Explanation:In the numerical rating method, all three factors, i.e., personal factors, environmental factors, and hereditary factors, are assessed for risk evaluation. Personal factors include habits such as smoking, alcohol consumption, etc., while environmental factors include pollution, occupation, etc. Hereditary factors include diseases that are inherited genetically, such as cancer, diabetes, etc. By assessing these factors, the underwriters can determine the level of risk associated with each factor and accordingly decide on the extra premium charged for the policy.

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