Question

What are rating factors in underwriting?

a.

Factors that contribute to lower premiums

b.

Factors that determine the insurance company's profitability

c.

Factors that evaluate the insured's financial situation and lifestyle

d.

Factors that impact the claim process for beneficiaries

Answer: (c).Factors that evaluate the insured's financial situation and lifestyle Explanation:Rating factors in underwriting refer to various aspects of the prospective insured's life that may pose a hazard and increase the risk. These factors can be broadly divided into two categories: those contributing to moral hazard (e.g., financial situation, lifestyle, habits) and those contributing to physical or medical hazards. Underwriters use these factors to classify the risk accordingly.

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Q. What are rating factors in underwriting?

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