Financial Underwriting MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Financial Underwriting, a fundamental topic in the field of IC22 Life Insurance Underwriting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Financial Underwriting MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Financial Underwriting mcq questions that explore various aspects of Financial Underwriting problems. Each MCQ is crafted to challenge your understanding of Financial Underwriting principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC22 Life Insurance Underwriting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Financial Underwriting MCQs are your pathway to success in mastering this essential IC22 Life Insurance Underwriting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Financial Underwriting. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Financial Underwriting knowledge to the test? Let's get started with our carefully curated MCQs!

Financial Underwriting MCQs | Page 13 of 13

Discover more Topics under IC22 Life Insurance Underwriting

Q121.
What is the income multiple method of calculating insurance cover?

a.

Takes into account the present value of the future earning potential of an individual

b.

Takes into account the value of financial liabilities and responsibilities of an individual

c.

Takes into account the age and income of the individual

d.

None of the above

Discuss
Answer: (c).Takes into account the age and income of the individual Explanation:The income multiple method of calculating insurance takes into account the age and income of the individual.
Q122.
What is the predominant reason to purchase life insurance on the life of a key person?

a.

To provide financial support to the key person's family

b.

To provide financial support to the policy beneficiary

c.

To indemnify the company against the loss of the key person whose skills and contribution is critical to the company

d.

None of the above

Discuss
Answer: (c).To indemnify the company against the loss of the key person whose skills and contribution is critical to the company Explanation:A predominant reason to purchase life insurance on the life of a key person is to indemnify the company against the loss of the key person whose skills and contribution is critical to the company.
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