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 7 of 12

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Q61.
What is the longest part of the life insurance application process?

a.

Obtaining all related documents

b.

Selection and classification of risk

c.

Obtaining medical reports

d.

Communicating the decision to the client

Discuss
Answer: (c).Obtaining medical reports Explanation:Obtaining medical reports is usually the longest part of the entire life insurance application process.
Q62.
What happens if a customer is unable to provide the required information within the stipulated time?

a.

The insurance company cancels the application and keeps the money

b.

The insurance company cancels the application and refunds the money

c.

The insurance company approves the application without the required information

d.

The insurance company holds the application until the required information is provided

Discuss
Answer: (b).The insurance company cancels the application and refunds the money Explanation:In cases where the customer is unable to comply with the required information within the stipulated time, the application for insurance is cancelled and the money is refunded to the client as mandated in the regulatory guidelines.
Q63.
What is a counter-offer in life insurance underwriting?

a.

An offer made by the insurer to charge a higher premium

b.

An offer made by the client to pay a lower premium

c.

An offer made by the insurer to decline the proposal

d.

An offer made by the client to provide additional information

Discuss
Answer: (a).An offer made by the insurer to charge a higher premium Explanation:A counter-offer is an offer made by the insurer to charge a higher premium to cover the extra risk that the client brings to the portfolio.
Q64.
When is the policy document issued in life insurance?

a.

After obtaining all related documents

b.

After communicating the decision to the client

c.

After charging extra premium for sub-standard lives

d.

After the underwriter approves the proposal for life insurance

Discuss
Answer: (d).After the underwriter approves the proposal for life insurance Explanation:The policy document is issued to the client after the underwriter approves the proposal for life insurance.
Q65.
What happens if the client does not agree to the terms of the counter-offer proposed by the insurer?

a.

The initial premium money is refunded

b.

The policy contract comes to a conclusive phase

c.

The final premium is set and may sometimes override the initial quote

d.

None of the above

Discuss
Answer: (a).The initial premium money is refunded Explanation:If the client does not agree to the terms of the counter-offer proposed by the insurer, the initial premium money paid by the client is refunded in accordance with the rules.
Q66.
What is the purpose of obtaining consent for the revised rates from the customer?

a.

To generate a new quote

b.

To charge extra premium

c.

To override the initial quote

d.

To evaluate the underwriting decision

Discuss
Answer: (b).To charge extra premium Explanation:The purpose of obtaining consent for the revised rates from the customer is to charge extra premium to cover the extra risk that the client brings to the portfolio.
Q67.
What happens if the client does not agree to the terms of the counter-offer proposed by the insurer?

a.

The final premium is set

b.

The policy contract comes to a conclusive phase

c.

The initial premium money paid by the client is refunded

d.

The client is charged an extra premium

Discuss
Answer: (c).The initial premium money paid by the client is refunded Explanation:If the client does not agree to the terms of the counter-offer proposed by the insurer, the initial premium money paid by the client is refunded in accordance with the rules.
Q68.
What is the purpose of issuing a life insurance policy document?

a.

To refund the excess amount of premium received under the policy

b.

To charge extra premium

c.

To provide life insurance protection for the period the client has opted for

d.

To generate a new quote

Discuss
Answer: (c).To provide life insurance protection for the period the client has opted for Explanation:The purpose of issuing a life insurance policy document is to provide life insurance protection for the period the client has opted for, as long as the customer continues to pay his premiums within the stipulated time.
Q69.
What is the core responsibility of the core underwriting team in an insurance company?

a.

To maintain MIS of the business received and underwritten

b.

To liaise and make payments to the TPAs for medical tests

c.

To manage and control TPAs and quality-control checks

d.

To develop and implement policies and procedures for the underwriting department

Discuss
Answer: (d).To develop and implement policies and procedures for the underwriting department Explanation:The core underwriting team's main duties and responsibilities include underwriting medical and non-medical proposals in accordance with the guidelines laid down by the insurance company and the regulators, devising underwriting guidelines according to legal and market conditions, and developing and implementing policies and procedures for the underwriting department.
Q70.
Which team is responsible for managing the medical panel or TPAs in an insurance company?

a.

Core underwriting team

b.

Medical team or TPA team

c.

Chief medical officer (CMO)

d.

None of the above

Discuss
Answer: (b).Medical team or TPA team Explanation:The Third-Party Administrators or TPA team members co-ordinate and manage the medical panel or the TPAs. They are responsible for the MIS regarding the medical reports.
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