Life Underwriting Principles and Concepts Part 1 MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Life Underwriting Principles and Concepts Part 1, 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 Life Underwriting Principles and Concepts Part 1 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 Life Underwriting Principles and Concepts Part 1 mcq questions that explore various aspects of Life Underwriting Principles and Concepts Part 1 problems. Each MCQ is crafted to challenge your understanding of Life Underwriting Principles and Concepts Part 1 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 Life Underwriting Principles and Concepts Part 1 MCQs are your pathway to success in mastering this essential IC22 Life Insurance Underwriting topic.

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Life Underwriting Principles and Concepts Part 1 MCQs | Page 3 of 12

Discover more Topics under IC22 Life Insurance Underwriting

Q21.
What are the ratings provided by the underwriter to individual cases in the process of rating the risk?

a.

Standard, extra, and premium

b.

Low, high, and substantially high

c.

Predictive, mortality, and actuaries

d.

Loading, exclusions, and postponement

Discuss
Answer: (b).Low, high, and substantially high Explanation:The underwriter can provide the following ratings to individual cases depending on whether the predictive mortality is low, high, or substantially high.
Q22.
What decision is taken if the mortality risk is found to be higher than the standard mortality table?

a.

Accept the risk

b.

Accept the risk with special terms

c.

Postpone the risk

d.

Decline the risk

Discuss
Answer: (b).Accept the risk with special terms Explanation:If the mortality risk is found to be higher than the standard mortality table, the underwriter may decide to accept the proposal with some special terms such as loading or exclusions.
Q23.
What decision is taken if the mortality risk is found to be substantially high and is either predicted to remain static or may increase in the future?

a.

Accept the risk

b.

Accept the risk with special terms

c.

Postpone the risk

d.

Decline the risk

Discuss
Answer: (d).Decline the risk Explanation:If the mortality risk is found to be substantially high when compared to the mortality table and is either predicted to remain static or may increase in the future, the risk may be declined.
Q24.
How is the premium to be charged to the proposer determined?

a.

It is based on the underwriter's estimate of the level of risk.

b.

It is based on the proposer's income.

c.

It is based on the proposer's credit score.

d.

It is determined from the premium table prepared by actuaries.

Discuss
Answer: (d).It is determined from the premium table prepared by actuaries. Explanation:The premium to be charged to the proposer is determined from the premium table prepared by actuaries.
Q25.
What is the standard premium charged to individuals?

a.

It is charged if the predictive mortality does not deviate much from the standard values

b.

It is charged if the individual is a sub-standard risk

c.

It is charged if the individual is older than a certain age

d.

It is charged if the individual has a pre-existing medical condition

Discuss
Answer: (a).It is charged if the predictive mortality does not deviate much from the standard values Explanation:According to the premium table, the standard premium is charged to individuals if the predictive mortality does not deviate much from the standard values, when compared to that indicated in the mortality table provided by the actuaries.
Q26.
What factors are considered in life insurance underwriting?

a.

Health related factors

b.

Lifestyle and habits

c.

Both a and b

d.

None of the above

Discuss
Answer: (c).Both a and b Explanation:The factors that are analyzed while selecting an individual for life insurance cover in life insurance underwriting are health-related factors (such as medical history, present medical conditions, mental status, and family history) as well as lifestyle and habits (such as personal habits and avocations, drinking habits, smoking habits, tobacco consumption habits, and high-risk hobbies). Therefore, both health-related factors and lifestyle and habits are considered in life insurance underwriting.
Q27.
What health-related factors are evaluated in life insurance underwriting?

a.

Medical history of the applicant

b.

Present medical conditions, diagnosis, and treatment details

c.

Mental status of the applicant

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Medical history of the applicant, present medical conditions, diagnosis, and treatment details, and mental status of the applicant are all important health-related factors that underwriters consider when determining the applicant's eligibility for life insurance coverage and setting the appropriate premiums.
Q28.
What is evaluated in family history for life insurance underwriting?

a.

Presence of hereditary diseases in the family

b.

Longevity of family members

c.

Both a and b

d.

None of the above

Discuss
Answer: (c).Both a and b Explanation:Both the presence of hereditary diseases in the family and the longevity of family members are evaluated in family history for life insurance underwriting.
Q29.
Which of the following is evaluated under lifestyle and habits for life insurance underwriting?

a.

Personal habits and avocations

b.

Drinking habits

c.

Smoking habits

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Under lifestyle and habits, personal habits and avocations, drinking habits, and smoking habits are all evaluated for underwriting. High-risk hobbies and tobacco consumption habits, such as guthka, snuff, pan-masala, etc., are also evaluated in this category.
Q30.
What are some examples of high-risk hobbies evaluated in life insurance underwriting?

a.

Painting

b.

Cooking

c.

Scuba diving

d.

None of the above

Discuss
Answer: (c).Scuba diving Explanation:Scuba diving is considered a high-risk hobby because of the potential dangers and risks involved, such as drowning, decompression sickness, and other diving-related injuries. Other high-risk hobbies that may be evaluated in life insurance underwriting include bungee jumping, skydiving, rock climbing, and racing sports.
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