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 8 of 12

Discover more Topics under IC22 Life Insurance Underwriting

Q71.
What is the role of the Chief Medical Officer (CMO) 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 bring along a wide range of experience in practicing medicine

Discuss
Answer: (d).To bring along a wide range of experience in practicing medicine Explanation:The chief medical officer or medical director in an insurance company is generally a doctor with long-standing experience in the field of general medicine and cardiology, and who brings along a wide range of experience in practicing medicine.
Q72.
What is the responsibility of the TPA team in an insurance company?

a.

To underwrite medical and non-medical proposals

b.

To manage and control TPAs and quality-control checks

c.

To liaise and make payments to the TPAs for medical tests

d.

To recommend proposals to the reinsurers which are beyond their scope of authority

Discuss
Answer: (c).To liaise and make payments to the TPAs for medical tests Explanation:The Third-Party Administrators or TPA team members co-ordinate and manage the medical panel or the TPAs. They are responsible for liaising and making timely payments to the TPAs for medical tests done by them on a regular basis, managing and controlling the TPA, and quality-control checks put in place with respect to medical reporting by various diagnostic centers.
Q73.
What is the benefit of a CMO with specialized knowledge in "insurance-medicine"?

a.

Enhancing the company's ability to place profitable business

b.

Coordinating and managing the medical panel or TPAs

c.

Developing underwriting guidelines

d.

Referring and recommending proposals to the reinsurers

Discuss
Answer: (a).Enhancing the company's ability to place profitable business Explanation:A CMO with specialized knowledge in "insurance-medicine" can enhance the company's ability to place profitable business by providing technical expertise in framing underwriting guidelines and participating in claim adjudication, medico-legal cases, and other areas of company operations.
Q74.
Who may assist the CMO in his or her activities?

a.

The core underwriting team

b.

The TPA team members

c.

A team of one or more doctors

d.

The regulators

Discuss
Answer: (c).A team of one or more doctors Explanation:The CMO/Medical Director may have a team of one or more doctors who assist in activities such as medico-actuarial studies, research, and developing innovative health and critical illness products.
Q75.
What are the additional roles that a Chief Medical Officer may have in an insurance company?

a.

Participation in claim adjudication, marketing, and actuarial areas

b.

Managing and coordinating communication received from clients and different branches

c.

Generating policy contracts and dispatching them to customers

d.

Monitoring MIS for senior management

Discuss
Answer: (a).Participation in claim adjudication, marketing, and actuarial areas Explanation:An extended role for a CMO may include participation in claim adjudication, helping in the adjudication of medico-legal cases of claims, marketing, actuarial and other areas of company operations.
Q76.
What activities are managed by the underwriting support team?

a.

Technical underwriting and final underwriting decisioning

b.

Administration of activities from the point of entry of insurance applications to final underwriting decisioning

c.

Sales and marketing of insurance products

d.

Claims adjudication and medico-legal cases

Discuss
Answer: (b).Administration of activities from the point of entry of insurance applications to final underwriting decisioning Explanation:The underwriting support team manages and controls the administration of various activities and sub-activities from the point of entry of insurance applications in the underwriting department up to the stage of final underwriting decisioning.
Q77.
What is the responsibility of the reinsurance unit of the underwriting-support team?

a.

Management and coordination of communication received from the client and different branches

b.

Reconciliation of all applications received and processed in the underwriting function and compiling the MIS for the senior management team

c.

Control of cases referred to reinsurers for decisions/guidance

d.

Compilation and reconciling of daily, fortnightly, monthly, and yearly MIS

Discuss
Answer: (c).Control of cases referred to reinsurers for decisions/guidance Explanation:The cases referred to the reinsurers for decisions/guidance are controlled by the reinsurance unit of the underwriting-support team.
Q78.
What does the underwriting support team do?

a.

Manage and control the administration of underwriting activities

b.

Handle technical underwriting decisions

c.

Coordinate with the actuarial department of an insurance company

d.

Set financial limits for insurers and individual underwriters

Discuss
Answer: (a).Manage and control the administration of underwriting activities Explanation:The underwriting support team manages and controls the administration of various activities and sub-activities other than underwriting, from the point of entry of insurance applications in the underwriting department up to the stage of final underwriting decisioning (excluding technical underwriting, which is done by the underwriters).
Q79.
What is the main responsibility of the underwriting support team?

a.

Issuance of policy documents

b.

Reconciliation of all applications received and processed in the underwriting function

c.

Coordinating with the actuarial department

d.

Setting underwriting authorities for individual underwriters

Discuss
Answer: (b).Reconciliation of all applications received and processed in the underwriting function Explanation:The main duties and responsibilities of an Underwriting-Support team include management and coordination of all communication received from the client and different branches and handing it over to the underwriting team, ensuring that the requirements ordered by the underwriting team are conveyed to the client and are followed-up for compliance by the clients, reconciliation of all applications received and processed in the underwriting function and compiling the MIS for the senior management team, follow-up with the branches of the insurance company on complying with the pending requirements for expediting the issuance of policies of respective branches, compilation and reconciling of daily, fortnightly, monthly and yearly MIS and monitoring it closely, and ensuring the policy contracts (policy documents) are generated for all processed policies and dispatched to the customers in a timely manner and a record kept.
Q80.
What criteria are considered for granting individual limits for underwriters?

a.

Level of technical expertise

b.

Requisite qualifications gained through the levels of exams passed by the underwriter

c.

Experience levels of the individual underwriters

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:All three criteria - level of technical expertise, requisite qualifications gained through the levels of exams passed by the underwriter, and experience levels of the individual underwriters - are factors that are considered when granting individual limits for underwriters.
Page 8 of 12