Q. Which step comes after deciding whether or not to accept a risk in the underwriting process?

View solution

Q. What is the key purpose of underwriting in insurance?

View solution

Q. What is the primary purpose of gathering information for underwriting in insurance?

View solution

Q. Which of the following is NOT a source of information for underwriting?

View solution

Q. Why is careful underwriting and risk classification essential in insurance?

View solution

Q. What is the purpose of underwriting when it comes to classifying risks?

View solution

Q. How are the objectives of underwriting achieved?

View solution

Q. Why does every insurance product need to be filed with IRDAI for approval before being offered for sale?

View solution

Q. What does the regulator ask the insurer to commit to when filing an insurance product?

View solution

Q. What should the insurer plan for when introducing a product into the market?

View solution

Q. What is the main purpose of ratemaking in insurance?

View solution

Q. How are rates and premiums related in insurance?

View solution

Q. What is the principle referred to as 'the law of large numbers' in insurance?

View solution

Q. How can an insurance company ensure that the pool is sufficient to compensate for incurred losses?

View solution

Q. What does the 'law of large numbers' principle mean for insurance companies?

View solution

Q. How does the 'law of large numbers' relate to the predictability of results in insurance?

View solution

Q. What does the 'law of large numbers' principle help insurance companies achieve?

View solution

Q. Identify the two factors that affect insurance ratemaking.

View solution

Q. What is the "pure premium" in insurance ratemaking?

View solution

Q. How is the "pure premium" calculated?

View solution