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!

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Underwriting Process and Structure MCQs | Page 10 of 12

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Q91.
If an individual's gene test indicates the presence of a certain gene, how will the insurance company categorize the individual?

a.

As a standard risk with a lower premium

b.

As a sub-standard risk with a higher premium

c.

As a high-risk individual who cannot be insured

d.

As an individual who does not need insurance

Discuss
Answer: (b).As a sub-standard risk with a higher premium Explanation:When an individual's gene test indicates the presence of a certain gene, the insurance company will categorize the individual as a sub-standard risk with a higher premium. This is because the presence of certain genes may increase the individual's risk of developing a genetic disorder, which increases the likelihood of a claim being made on the insurance policy. As a result, the insurance company charges a higher premium to cover the potential increased risk.
Q92.
What happens if an individual's gene test indicates the absence of a certain gene?

a.

The individual will be denied insurance

b.

The individual will be charged a higher premium

c.

The individual will be accepted as a standard risk with a lower premium

d.

The individual will be accepted as a high-risk individual with a higher premium

Discuss
Answer: (c).The individual will be accepted as a standard risk with a lower premium Explanation:If the gene test indicates that the individual does not have the gene associated with a particular disease, then the insurance company will consider the individual to be at a lower risk for that disease and will charge a lower premium for providing insurance coverage.
Q93.
Is genetic testing done as a pre-insurance screening process in India?

a.

Yes

b.

No

c.

Sometimes

d.

It depends on the insurance company

Discuss
Answer: (b).No Explanation:Insurance companies in India do not currently use genetic testing as part of their pre-insurance screening process.
Q94.
What are the reasons for genetic testing?

a.

Pre-symptomatic testing for predicting adult-onset disorders

b.

To confirm a diagnosis and direct a physician towards appropriate treatments

c.

Pre-natal diagnostic testing

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Genetic testing is done for pre-symptomatic testing, to confirm a diagnosis and direct a physician towards appropriate treatments, and for pre-natal diagnostic testing.
Q95.
What are the advantages of genetic testing in insurance?

a.

It helps in predictive analysis or as a prognostic tool for predicting the onset of serious disorders

b.

It is especially useful to healthy (pre-symptomatic) people who are identified as being at high risk because of a strong family medical history for the disorder

c.

It helps in evaluating life risks and determining the extent of loading that needs to be applied to an applicant

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Genetic testing in insurance helps in predictive analysis or as a prognostic tool for predicting the onset of serious disorders, is especially useful to healthy (pre-symptomatic) people who are identified as being at high risk because of a strong family medical history for the disorder, and helps in evaluating life risks and determining the extent of loading that needs to be applied to an applicant.
Q96.
What are the disadvantages of genetic testing?

a.

Gene testing only indicates uncertain probabilities rather than clear cut prediction of a certain disease that might be present in an individual

b.

Gene testing can result in discrimination where certain individuals could be denied insurance cover due to presence of certain genes

c.

There exist limitations such as laboratory errors due to sample contamination of the chemicals used for testing

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The disadvantages of genetic testing include that gene testing only indicates uncertain probabilities rather than clear cut prediction of a certain disease that might be present in an individual, gene testing can result in discrimination where certain individuals could be denied insurance cover due to presence of certain genes, and there exist limitations such as laboratory errors due to sample contamination of the chemicals used for testing.
Q97.
What are the limitations of genetic testing?

a.

Ambiguities in the test interpretation and risks for discrimination and social stigmas attached

b.

Medico-legal issues that can come up with the introduction of genetic testing in life insurance applicants

c.

Both a and b

d.

None of the above

Discuss
Answer: (c).Both a and b Explanation:The limitations of genetic testing include ambiguities in the test interpretation and risks for discrimination and social stigmas attached, as well as medico-legal issues that can come up with the introduction of genetic testing in life insurance applicants.
Q98.
What are some potential medico-legal issues associated with genetic testing in life insurance?

a.

Discrimination

b.

Social stigmas

c.

Laboratory errors

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Genetic testing in life insurance can lead to discrimination, social stigmas, and laboratory errors, which can result in medico-legal issues.
Q99.
What is a potential benefit for those previously considered uninsurable due to gene testing?

a.

They could become insurable if it is proven that the predictive value of a particular disease is miniscule or inconsequential

b.

They could be given free insurance coverage

c.

They could be given coverage at a reduced premium

d.

None of the above

Discuss
Answer: (a).They could become insurable if it is proven that the predictive value of a particular disease is miniscule or inconsequential Explanation:If the predictive value of a particular disease is found to be miniscule or inconsequential, individuals previously considered uninsurable due to gene testing could become insurable.
Q100.
Gene test is also known as

a.

DNA based test

b.

Molecule based test

c.

Protein based test

d.

Medico-legal test

Discuss
Answer: (a).DNA based test Explanation:Gene testing is a medical test that uses DNA analysis to identify genetic disorders or to assess the likelihood of a person developing a particular disorder. DNA is the molecule that carries genetic information in living organisms, and gene tests are based on the analysis of DNA samples. Therefore, gene tests are also known as DNA-based tests.
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