Question

Why do insurers exercise caution in designing various documents?

a.

To increase claim expenses

b.

To reduce the number of genuine claims

c.

To avoid legal cases and higher claim expenses

d.

To encourage policyholders to disclose medical conditions

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).To avoid legal cases and higher claim expenses Explanation:Insurers exercise caution in designing various documents to avoid legal cases and higher claim expenses.

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