Question

What are the two kinds of exclusions that an underwriter can impose when accepting a risk with exclusions?

a.

General and specific exclusions

b.

Special and general exclusions

c.

Occupational and medical exclusions

d.

Exclusions for sub-standard and highly sub-standard risks

Posted under IC22 Life Insurance Underwriting

Answer: (a).General and specific exclusions Explanation:When an underwriter accepts a risk with exclusions, they may impose two kinds of exclusions: general and specific exclusions. General exclusions apply to all individuals covered by a particular product, while specific exclusions are applied only to certain individuals based on their health and risk profile determined after underwriting the proposal. Exclusions are restrictions on the policy coverage that specify certain situations or conditions under which the policy will not provide benefits. While exclusions can limit the benefits available to the policyholder, they can also help the insurer manage risk by excluding coverage for specific risks that are deemed too high or unpredictable.

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Q. What are the two kinds of exclusions that an underwriter can impose when accepting a risk with exclusions?
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