Question

Why is underwriting important in the insurance industry?

a.

To maximize insurer profits at the expense of policyholders

b.

To promote anti-selection and encourage more insurance purchases

c.

To assess risk, prevent anti-selection, and maintain fair insurance practices

d.

To offer insurance to anyone without evaluation

Answer: (c).To assess risk, prevent anti-selection, and maintain fair insurance practices Explanation:Underwriting plays a crucial role in assessing risk and preventing anti-selection to maintain fairness in insurance practices.

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Q. Why is underwriting important in the insurance industry?

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