Question

What is the benefit of deferment or postponement of risk for the insurer?

a.

It allows the insurer to charge extra premiums.

b.

It allows the insurer to avoid adding very high risks to the portfolio.

c.

It allows the insurer to cover all risks.

d.

It allows the insurer to accept all applicants.

Posted under IC22 Life Insurance Underwriting

Answer: (b).It allows the insurer to avoid adding very high risks to the portfolio. Explanation:Deferment or postponement of risk allows the insurer to avoid adding very high risks to the portfolio, thus helping to maintain a balanced risk profile.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the benefit of deferment or postponement of risk for the insurer?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. In which case would an underwriter decline a proposal?

View solution

Q. Can an underwriter decline a proposal from an applicant with an incurable disease?

View solution

Q. In which of the following ways can an insurance company communicate its terms of acceptance to a life insured?

View solution

Q. What are riders in life insurance policies?

View solution

Q. When can riders be added to a life insurance policy?

View solution

Q. Do riders need to be underwritten like the base cover?

View solution

Q. Which rider can be added only at the commencement of the policy contract?

View solution

Q. What is the purpose of the waiver of premium (WoP) rider or Premium Waiver Benefit (PWB) rider?

View solution

Q. What is the purpose of the critical illness (C.I.) rider?

View solution

Q. What is the purpose of the accidental death benefit (ADB) rider?

View solution

Q. What is the purpose of the total permanent disability benefit rider (TPD)?

View solution

Q. What is the purpose of the term rider?

View solution

Q. What is the purpose of the Waiver of Premium (WoP) rider?

View solution

Q. When is the Waiver of Premium (WoP) rider more popularly used?

View solution

Q. What happens if the life insured (parent) dies in a child plan with the Waiver of Premium (WoP) rider?

View solution

Q. What is the purpose of the Accidental Death Benefit (ADB) rider?

View solution

Q. What is the maximum amount of benefit offered by the Accidental Death Benefit (ADB) rider?

View solution

Q. What is the underwriter evaluating while assessing the accident risk and granting the ADB rider benefit?

View solution

Q. Can the Accidental Death Benefit (ADB) rider be declined by the insurance company?

View solution

Q. What is the Waiver of Premium rider?

View solution
View All MCQs on IC22 Life Insurance Underwriting

Recommended Subjects

Are you eager to expand your knowledge beyond IC22 Life Insurance Underwriting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Basic Electrical Engineering

Master the fundamentals of Electrical Engineering with our specialized category....

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

Environmental Biotechnology

Discover the intersection of biology and environmental science with our Environmental...

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Corrosion Engineering

Master the art of preventing material deterioration with our Corrosion Engineering...

Automotive Engine Design

Embark on a thrilling exploration of Automotive Engine Design, where the intricacies...

Foundation Engineering

Master the principles of Foundation Engineering with our specialized category....