Question

What are the objectives of financial underwriting?

a.

To minimize fraudulent claims, minimize adverse claims experience due to anti-selection, and minimize the early lapse and surrender due to the insured not being able to pay the premium

b.

To maximize fraudulent claims, maximize adverse claims experience due to anti-selection, and maximize the early lapse and surrender due to the insured not being able to pay the premium

c.

To minimize fraudulent claims, maximize adverse claims experience due to anti-selection, and minimize the early lapse and surrender due to the insured not being able to pay the premium

d.

To maximize fraudulent claims, minimize adverse claims experience due to anti-selection, and maximize the early lapse and surrender due to the insured not being able to pay the premium

Posted under IC22 Life Insurance Underwriting

Answer: (a).To minimize fraudulent claims, minimize adverse claims experience due to anti-selection, and minimize the early lapse and surrender due to the insured not being able to pay the premium Explanation:The objectives of financial underwriting are to minimize fraudulent claims, minimize adverse claims experience due to anti-selection, and minimize the early lapse and surrender due to the insured not being able to pay the premium.

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