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 4 of 12

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Q31.
What is the medical-sum-at-risk (MSAR)?

a.

The total face-value or sum assured under risk for a certain policy

b.

The total face-value or sum assured of all insurance policies with the insurer

c.

The total amount of insurance with other insurance companies

d.

The total amount of premiums paid by the applicant

Discuss
Answer: (a).The total face-value or sum assured under risk for a certain policy Explanation:Medical-sum-at-risk (MSAR) refers to the total face-value or sum assured under risk for a certain policy for ascertaining the type of medical tests to be done by the life proposed as pre-insurance screening.
Q32.
What is excluded from the medical-sum-at-risk?

a.

The sum assured of the waiver of premium benefit rider

b.

The sum assured of the accident benefit rider

c.

Both a and b

d.

Neither a nor b

Discuss
Answer: (c).Both a and b Explanation:Medical-sum-at-risk excludes the sum assured of the waiver of premium benefit rider and the accident benefit rider.
Q33.
What is the financial-sum-at-risk (FSAR)?

a.

The total face-value or sum assured under risk for a certain policy

b.

The total face-value or sum assured of all insurance policies with the insurer

c.

The total amount of insurance with other insurance companies

d.

The total sum assured existing and proposed with all the insurance companies put together

Discuss
Answer: (d).The total sum assured existing and proposed with all the insurance companies put together Explanation:Financial-sum-at-risk (FSAR) covers the total sum assured existing and proposed with all the insurance companies put together and not restricted only to the companies that the client is currently applying for, but of all insurance companies that he has policies he has with.
Q34.
What is the Agent's Confidential Report (ACR)?

a.

A medical report provided by the applicant's doctor

b.

A report submitted by the agent on the applicant's personal and medical history

c.

A report on the mortality rate of the applicant's age group

d.

A report on the premium rates for the applicant's insurance policies

Discuss
Answer: (b).A report submitted by the agent on the applicant's personal and medical history Explanation:The Agent's Confidential Report (ACR) is a report submitted by the agent on the applicant's personal and medical history and is an important tool for assessing the risk in the absence of a medical screening process.
Q35.
What is the purpose of determining the medical or non-medical basis of a proposal?

a.

To evaluate the applicant's financial status

b.

To evaluate the applicant's occupation

c.

To determine whether the applicant is eligible for the insurance product

d.

To determine whether the applicant has any criminal history

Discuss
Answer: (c).To determine whether the applicant is eligible for the insurance product Explanation:The purpose of determining the medical or non-medical basis of a proposal is to determine whether the applicant is eligible for the insurance product.
Q36.
What factors are generally considered in the norms for determining whether a proposal is to be underwritten on a medical or non-medical basis?

a.

The medical grid, the age of the life to be assured, and the total financial-sum-at-risk

b.

The age of the life to be assured, the total medical-sum-at-risk, and the product applied for

c.

The personal and medical history of the life to be assured, the product applied for, and the applicant's occupation

d.

The BMI, the personal and medical history of the life to be assured, and the applicant's lifestyle

Discuss
Answer: (b).The age of the life to be assured, the total medical-sum-at-risk, and the product applied for Explanation:The factors generally considered in the norms for determining whether a proposal is to be underwritten on a medical or non-medical basis are the age of the life to be assured, the total medical-sum-at-risk, and the product applied for.
Q37.
What is BMI used for?

a.

To evaluate an individual's risk profile for insurance underwriting

b.

To evaluate an individual's financial status

c.

To evaluate an individual's occupation

d.

To determine an individual's criminal history

Discuss
Answer: (a).To evaluate an individual's risk profile for insurance underwriting Explanation:BMI is used to evaluate an individual's risk profile for insurance underwriting.
Q38.
What is the purpose of calculating the medical-sum-at-risk?

a.

To determine the type of medical tests to be done by the life proposed as pre-insurance screening

b.

To determine the total financial-sum-at-risk of an individual

c.

To determine the applicant's occupation

d.

To evaluate the applicant's financial status

Discuss
Answer: (a).To determine the type of medical tests to be done by the life proposed as pre-insurance screening Explanation:The purpose of calculating the medical-sum-at-risk is to determine the type of medical tests to be done by the life proposed as pre-insurance screening.
Q39.
What is the difference between MSAR and FSAR?

a.

MSAR refers to the total face-value or sum assured under risk for a certain policy, while FSAR covers the total sum assured existing and proposed with all insurance companies.

b.

MSAR refers to the total sum assured of all insurance policies with the insurer+ riders, while FSAR takes into account only the amount of insurance with other insurance companies.

c.

MSAR is used for financial underwriting, while FSAR is used for medical underwriting.

d.

MSAR is used for medical underwriting, while FSAR is used for financial underwriting.

Discuss
Answer: (a).MSAR refers to the total face-value or sum assured under risk for a certain policy, while FSAR covers the total sum assured existing and proposed with all insurance companies. Explanation:The difference between MSAR and FSAR is that MSAR refers to the total face-value or sum assured under risk for a certain policy, while FSAR covers the total sum assured existing and proposed with all insurance companies.
Q40.
What is the purpose of a pre-insurance medical examination?

a.

To determine the premium amount

b.

To evaluate the risk of the person to be insured

c.

To determine the type of policy to be issued

d.

To evaluate the underwriting guidelines of the company

Discuss
Answer: (b).To evaluate the risk of the person to be insured Explanation:The purpose of a pre-insurance medical examination is to evaluate the risk of the person to be insured.
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