Question

What does it mean when an individual is classified as a "Declined Risk" in underwriting?

a.

They have the lowest chances of falling ill

b.

They have average chances of falling ill

c.

They are highly prone to sickness and likely to cause losses

d.

They are preferred risks with low morbidity

Posted under IC38 Life Insurance Agent Exam

Answer: (c).They are highly prone to sickness and likely to cause losses Explanation:A "Declined Risk" in underwriting is an individual who is highly prone to sickness and likely to cause losses to the insurer, making it difficult to insure them even at higher premium rates.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does it mean when an individual is classified as a "Declined Risk" in underwriting?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What does primary underwriting involve in the underwriting process?

View solution

Q. What is the role of an insurance agent in primary underwriting?

View solution

Q. Why is the role of an agent crucial in the underwriting process?

View solution

Q. Where does the major part of underwriting take place in the insurance company?

View solution

Q. What is portability of health insurance as defined by IRDAI?

View solution

Q. When can the process of portability be initiated by an insured individual?

View solution

Q. How much time in advance should an insured individual request porting to the old insurer?

View solution

Q. Which entity maintains data about all health insurance policies issued by insurance companies to individuals?

View solution

Q. What terms of the new policy, including the premium, are decided by the new insurance company during portability?

View solution

Q. What is migration of health insurance, as defined by IRDAI?

View solution

Q. When can a policyholder apply for migration of their health insurance policy?

View solution

Q. Can insurers levy charges exclusively for migration of health insurance policies?

View solution

Q. What is the basis for risk classification and premium determination in health insurance underwriting?

View solution

Q. Why is age proof required in the underwriting process for health insurance?

View solution

Q. Which of the following is considered a standard age proof for health insurance?

View solution

Q. In which situations are financial documents typically asked for in health insurance underwriting?

View solution

Q. What leads to the requirement of medical reports in health insurance underwriting?

View solution

Q. How can sales personnel be viewed in the underwriting process for health insurance?

View solution

Q. What is medical underwriting in health insurance?

View solution

Q. What conditions should be carefully considered in medical underwriting due to their high probability of future hospitalization?

View solution
View All MCQs on IC38 Life Insurance Agent Exam

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Logical Reasoning

Enhance your logical thinking and decision-making abilities with our Logical...

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....

Heat Transfer

Explore the fascinating world of heat transfer with our Heat Transfer category....

IC 92 Actuarial Aspects of Product Development

Sharpen your understanding of actuarial principles in product development with our...

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...

Analytical Instrumentation

Dive into the world of precise measurements with our Analytical Instrumentation...

Dairy Engineering

Dive into the world of Dairy Engineering with our specialized category. Explore the...

Environment Management

Master the art of Environment Management with our specialized category. Explore...

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...