Underwriting Process and Structure MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Underwriting Process and Structure, 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 Underwriting Process and Structure 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 Underwriting Process and Structure mcq questions that explore various aspects of Underwriting Process and Structure problems. Each MCQ is crafted to challenge your understanding of Underwriting Process and Structure 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 Underwriting Process and Structure 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 Underwriting Process and Structure. 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 Underwriting Process and Structure knowledge to the test? Let's get started with our carefully curated MCQs!

Underwriting Process and Structure MCQs | Page 1 of 12

Discover more Topics under IC22 Life Insurance Underwriting

Q1.
What are the various channels through which life insurance policies are sold today?

a.

Traditional model of insurance agents

b.

Internet sales

c.

Brokers and Corporate agents

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The process of sale of life insurance policies today is done through various channels, including the traditional model of insurance agents, internet sales, brokers, and corporate agents.
Q2.
What is the outsourcing model in the life insurance application process?

a.

The traditional processing comprising of data-entry of data from the information available in the proposal form until the stage of policy-issuance, which used to be done at the life insurance office.

b.

A shift to processing through external service providers, and not necessarily being done at the life insurance office.

c.

The process of monitoring and controls at the office of the insurer and the service provider.

d.

The agreements defining the scope of the vendor-contract, their respective roles, and the accountabilities.

Discuss
Answer: (b).A shift to processing through external service providers, and not necessarily being done at the life insurance office. Explanation:The erst-while traditional processing comprising of data-entry of data from the information available in the proposal form until the stage of policy-issuance, which used to be done at the life insurance office, has now seen a shift to the "outsourcing model" through external service providers, and not necessarily being done at the life insurance office.
Q3.
What are the two processes for underwriting used by life insurance companies?

a.

Centralised processing of underwriting/policy issue

b.

Decentralised processing of underwriting/policy issue

c.

Combination of both centralised and decentralised processing of underwriting/policy issue

d.

None of the above

Discuss
Answer: (c).Combination of both centralised and decentralised processing of underwriting/policy issue Explanation:Life insurance companies generally employ two processes for underwriting: centralised processing of underwriting/policy issue, where most of the processing with regard to policy issuance is done at the head office of an insurance office, and decentralised processing of underwriting/policy issue, where most of the processing with regard to policy issuance is done either at a regional office or at a branch office and not at the head office of the insurance company.
Q4.
What is the first step in the life insurance application process?

a.

Submitting the application form

b.

Generation of a life insurance quote

c.

Payment of the premium

d.

Medical examination

Discuss
Answer: (b).Generation of a life insurance quote Explanation:The life insurance application process begins with the generation of life insurance quotes.
Q5.
How can an individual generate a life insurance quote online?

a.

By filling out a paper form

b.

By visiting an insurance office

c.

By using a web-based application on a portal

d.

By making a phone call to the insurance company

Discuss
Answer: (c).By using a web-based application on a portal Explanation:An individual can generate a life insurance quote online by using a web-based application on a portal.
Q6.
What information does the system collect from the customer during the online data collection process?

a.

Name, address, phone number, e-mail ID, and any other additional non-medical or medical information that is relevant to the application

b.

Social security number and credit card details

c.

Employment history and income

d.

Marital status and number of dependents

Discuss
Answer: (a).Name, address, phone number, e-mail ID, and any other additional non-medical or medical information that is relevant to the application Explanation:The system collects information such as name, address, phone number, e-mail ID, and any other additional non-medical or medical information that is relevant to the application during the online data collection process.
Q7.
What is the benefit of generating a life insurance quote online?

a.

It is quicker than visiting the insurance company's office

b.

It is more expensive than other methods

c.

It requires more personal information than other methods

d.

It does not provide a comparative analysis of different products

Discuss
Answer: (a).It is quicker than visiting the insurance company's office Explanation:An online quote takes just a few minutes, making it quicker than visiting the insurance company's office.
Q8.
What kind of information does the insurance company collect during the online data collection process?

a.

Only medical information

b.

Only personal information

c.

Both medical and non-medical information

d.

Neither medical nor personal information

Discuss
Answer: (c).Both medical and non-medical information Explanation:The insurance company seeks data on the name, address, phone number, e-mail ID, and any other additional non-medical or medical information that is relevant to the application.
Q9.
Which of the following is a benefit of online life insurance quotes?

a.

They require less personal information than other methods

b.

They provide only one product option to the customer

c.

They are more expensive than other methods

d.

They help the customer make an informed decision by providing a comparative analysis of different products

Discuss
Answer: (d).They help the customer make an informed decision by providing a comparative analysis of different products Explanation:Online life insurance quotes give the prospective buyer a comparative analysis of a wide range of products and help the customer to take an informed decision on the life insurance product they desire to buy.
Q10.
How do agents advise on suitable insurance products to the customer?

a.

By making a reference call to the customer

b.

By collecting information from the customer through a physical application form

c.

By running an automatic check on different insurance plans

d.

None of the above

Discuss
Answer: (b).By collecting information from the customer through a physical application form Explanation:Agents advise on suitable insurance products by collecting information from the customer through a physical application form.
Page 1 of 12