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 5 of 12

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Q41.
What are the two criteria used to assess individual risk?

a.

Mortality rate

b.

Morbidity rate

c.

Occupation

d.

Financial status

Discuss
Answer: (a).Mortality rate Explanation:Individual risk can be assessed based on the mortality rate and the morbidity rate.
Q42.
What is the mortality rate?

a.

The ratio of total deaths that occurred in a given group of people in a certain area over a specified period of time

b.

The ratio of total births that occurred in a given group of people in a certain area over a specified period of time

c.

The ratio of total population in a given group of people in a certain area over a specified period of time

d.

The ratio of total deaths that occurred in a given group of people in a certain area over a specified period of time, but only for children

Discuss
Answer: (a).The ratio of total deaths that occurred in a given group of people in a certain area over a specified period of time Explanation:The mortality rate is defined as the ratio of total deaths that occurred in a given group of people in a certain area over a specified period of time.
Q43.
How are mortality rates generally expressed?

a.

As the number of births per 1,000 of the population per year

b.

As the number of deaths per 100 of the population per year

c.

As the number of deaths per 1,000 of the population per year

d.

As the number of deaths per 10,000 of the population per year

Discuss
Answer: (c).As the number of deaths per 1,000 of the population per year Explanation:The mortality rates are generally expressed as the number of deaths per 1,000 of the population per year.
Q44.
What is a mortality table?

a.

A table that contains data on mortality rates based on age, gender, occupation, etc.

b.

A table that contains data on birth rates based on age, gender, occupation, etc.

c.

A table that contains data on death rates based on occupation only

d.

A table that contains data on mortality rates based on gender only

Discuss
Answer: (a).A table that contains data on mortality rates based on age, gender, occupation, etc. Explanation:A mortality table is defined as a table that contains data on mortality rates on the basis of age, gender, occupation, etc.
Q45.
What influences mortality rates?

a.

Nature of occupation

b.

Financial status of the individual

c.

Lifestyle and habits

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Mortality rates are influenced by various factors such as the nature of occupation, financial status of the individual, lifestyle and habits, and history of alcohol consumption, tobacco consumption, etc.
Q46.
Which of the following is a factor that can influence an individual's mortality rate in life insurance underwriting?

a.

Education level

b.

Hair color

c.

Favorite food

d.

Shoe size

Discuss
Answer: (a).Education level Explanation:Education level is one of the factors that can influence an individual's mortality rate. Studies have shown that individuals with higher levels of education tend to live longer than those with lower levels of education.
Q47.
What is a mortality table in life insurance underwriting?

a.

A table that shows the number of deaths in a given population over a specific period of time

b.

A table that shows the probability that a certain individual will die before their next birthday based on their age

c.

A table that shows the number of individuals who have purchased a particular life insurance policy

d.

A table that shows the premiums paid by policyholders in a particular demographic

Discuss
Answer: (b).A table that shows the probability that a certain individual will die before their next birthday based on their age Explanation:A mortality table used by actuaries is a table that contains data on mortality rates on the basis of age, gender, occupation, and other factors. It shows the probability that a certain individual will die before their next birthday based on their age.
Q48.
What factors related to lifestyle and habits can influence an individual's mortality rate in life insurance underwriting?

a.

History of alcohol consumption and tobacco consumption

b.

Favorite color and favorite book

c.

Number of siblings and number of pets

d.

Shoe size and height

Discuss
Answer: (a).History of alcohol consumption and tobacco consumption Explanation:History of alcohol consumption and tobacco consumption are examples of lifestyle and habit factors that can influence an individual's mortality rate. Other factors that can also influence mortality rate include diet, exercise habits, and substance abuse.
Q49.
What is the purpose of a mortality table in life insurance underwriting?

a.

To determine the number of deaths in a given population over a specific period of time

b.

To determine the premiums to be charged to policyholders

c.

To calculate the probability that a certain individual will die before their next birthday based on their age

d.

To track the financial status of policyholders in a particular demographic

Discuss
Answer: (c).To calculate the probability that a certain individual will die before their next birthday based on their age Explanation:A mortality table is used to calculate the probability that a certain individual will die before their next birthday based on their age. This information is then used to determine premiums and assess risk for life insurance policies.
Q50.
What is the definition of morbidity rate?

a.

The ratio of total deaths that occurred in a given group of people in a certain area over a specified/defined period of time

b.

The frequency with which a disease appears in a group of people on the basis of their age, gender, occupation, etc.

c.

The number of deaths in a given time in a given population

d.

The probability that a certain individual will die before his next birthday, on the basis of his age

Discuss
Answer: (b).The frequency with which a disease appears in a group of people on the basis of their age, gender, occupation, etc. Explanation:Morbidity rate is a measure of the frequency with which a particular disease or illness appears in a given population over a specified period of time. It is based on factors such as age, gender, occupation, and other relevant criteria. Insurers use morbidity rates to predict the likelihood that an insured will contract or develop a specified disease or medical condition.
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