Question

In which case would an underwriter decline a proposal?

a.

When the applicant is young and healthy

b.

When the applicant has a minor medical condition

c.

When the applicant engages in dangerous hobbies

d.

When the applicant is highly substandard and the extra risk may remain constant or even get worse

Posted under IC22 Life Insurance Underwriting

Answer: (d).When the applicant is highly substandard and the extra risk may remain constant or even get worse Explanation:An underwriter may decline a proposal when the applicant is highly substandard to such an extent that the extra risk may remain constant or even get worse, and neither postponement of risk nor charging of extra premium will help manage the extra risks.

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