Question

How are the objectives of underwriting achieved?

a.

By charging the same premium for all policyholders

b.

By setting the premium too high to cover the risk

c.

By deciding the level of acceptability, adequacy of premium, and other terms

d.

By eliminating the need for risk evaluation

Posted under IC38 Life Insurance Agent Exam

Answer: (c).By deciding the level of acceptability, adequacy of premium, and other terms Explanation:The objectives of underwriting are achieved by deciding the level of acceptability, adequacy of premium, and other terms based on risk assessment.

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Q. How are the objectives of underwriting achieved?
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