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 5 of 12

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Q41.
Who conducts the pre-insurance medical examination?

a.

The insurance agent

b.

The underwriter

c.

The customer

d.

The insurance company's medical panel or third party administrators

Discuss
Answer: (d).The insurance company's medical panel or third party administrators Explanation:The pre-insurance medical examination is conducted by the insurance company's medical panel or third party administrators (TPAs).
Q42.
What is included in a pre-insurance medical examination?

a.

Height, weight and blood pressure measurement

b.

Examination of organs and systems of the human body

c.

Taking of body fluids such as blood and urine sample

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:A pre-insurance medical examination includes measuring the height, weight and blood pressure, examining the organs and systems of the human body, and taking body fluids such as blood and urine sample.
Q43.
Who pays for the costs of the medical tests?

a.

The customer

b.

The insurance company

c.

The underwriter

d.

The insurance agent

Discuss
Answer: (b).The insurance company Explanation:The costs of the medical tests are generally borne by the insurance company.
Q44.
What are the additional questionnaires provided to clients during the pre-insurance medical examination for?

a.

To determine the type of policy to be issued

b.

To evaluate the underwriting guidelines of the company

c.

To provide important facts to evaluate the risk of the person to be insured

d.

To determine the premium amount

Discuss
Answer: (c).To provide important facts to evaluate the risk of the person to be insured Explanation:The additional questionnaires provided to clients during the pre-insurance medical examination provide important facts to evaluate the risk of the person to be insured.
Q45.
What tests may be conducted during a pre-insurance medical examination?

a.

Measuring height, weight, and blood pressure

b.

Cardiological tests like ECG, TMT, and X-Rays

c.

Blood and urine sample collection

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The medical examination may involve measuring height, weight, and blood pressure, as well as the collection of body fluids such as blood and urine samples. Cardiological tests like ECG, TMT, and X-Rays may also be conducted.
Q46.
How are medical examinations carried out by insurance companies?

a.

Through internal medical panels

b.

Through third-party administrators (TPAs)

c.

Both a and b

d.

None of the above

Discuss
Answer: (c).Both a and b Explanation:Medical examinations can be carried out by insurance companies through their internal medical panels or through third-party administrators (TPAs), whose services are regulated and licensed by the IRDA.
Q47.
What is the maximum time limit set by IRDA for processing life insurance proposals by insurance companies?

a.

30 days

b.

20 days

c.

15 days

d.

10 days

Discuss
Answer: (c).15 days Explanation:According to the regulatory norms established by the IRDA, proposals have to be processed by the insurance companies with speed and efficiency, and all decisions relating to the proposals have to be communicated in writing within a reasonable period not exceeding 15 days from receipt of the proposals by the insurer.
Q48.
What triggers the underwriting process of a life insurance proposal?

a.

Completed life insurance application

b.

Medical examination report

c.

Preliminary documents

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The preliminary documents (including the proof of age, the KYC documents, the income documents etc.), once received will trigger the underwriting process of selecting and classifying risks with respect to the client.
Q49.
What is the role of underwriters in the life insurance underwriting process?

a.

Review and approve life insurance proposals

b.

Select and classify risks with respect to the client

c.

Process the medical examination reports

d.

None of the above

Discuss
Answer: (b).Select and classify risks with respect to the client Explanation:The underwriters are responsible for selecting and classifying risks with respect to the client. They may request for personal medical records of the life to be assured before or after reviewing the life insurance application and medical examination test reports.
Q50.
How has the processing time for the end-to-end underwriting process changed in recent times?

a.

It has increased

b.

It has decreased

c.

It has remained the same

d.

It varies from insurer to insurer

Discuss
Answer: (b).It has decreased Explanation:The processing time for the end-to-end underwriting process has dramatically changed from several days to as low as a single day in cases which are processed through an automated rules-engine or "green channel" underwriting for cases meeting certain criteria.
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