H04 Health Insurance Underwriting MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on H04 Health Insurance Underwriting, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our H04 Health Insurance Underwriting 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 H04 Health Insurance Underwriting mcq questions that explore various aspects of H04 Health Insurance Underwriting problems. Each MCQ is crafted to challenge your understanding of H04 Health Insurance Underwriting principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our H04 Health Insurance Underwriting MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of H04 Health Insurance Underwriting. 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 H04 Health Insurance Underwriting knowledge to the test? Let's get started with our carefully curated MCQs!

H04 Health Insurance Underwriting MCQs | Page 7 of 7

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Q61.
Under what conditions can a group Personal Accident (PA) policy be issued excluding the death benefit?

a.

When there is no claims history for the group

b.

Subject to individual company guidelines

c.

When the number of insured persons exceeds 100

d.

When the group is registered as a co-operative society

Discuss
Answer: (b).Subject to individual company guidelines Explanation:A group Personal Accident (PA) policy can be issued excluding the death benefit subject to individual company guidelines.
Q62.
How are renewals of group policies rated based on claims experience?

a.

Adverse experience results in a premium discount (bonus)

b.

Favourable experience results in a premium loading (malus)

c.

Adverse experience results in a premium loading (malus)

d.

Favourable experience results in a premium discount (bonus)

Discuss
Answer: (c).Adverse experience results in a premium loading (malus) Explanation:Renewals of group policies are rated based on claims experience, and adverse experience results in a premium loading (malus).
Q63.
What happens when the claims experience for group policies is around 70 percent at the time of renewal?

a.

A significant premium discount is applied

b.

The normal rates will apply for renewal

c.

An additional premium is charged

d.

A policy cancellation is initiated

Discuss
Answer: (b).The normal rates will apply for renewal Explanation:When the claims experience for group policies is around 70 percent at the time of renewal, the normal rates will apply for renewal.
Q64.
The principle of utmost good faith in underwriting is required to be followed by ___________.

a.

The insurer

b.

The insured

c.

Both the insurer and the insured

d.

The medical examiners

Discuss
Answer: (c).Both the insurer and the insured Explanation:The principle of utmost good faith in underwriting is a mutual obligation between both the insurer and the insured. It requires both parties to provide complete and accurate information during the underwriting process.
Q65.
Insurable interest refers to ____________.

a.

Financial interest of the person in the asset to be insured

b.

The asset which is already insured

c.

Each insurer’s share of loss when more than one company covers the same loss

d.

The amount of the loss that can be recovered from the insurer

Discuss
Answer: (a).Financial interest of the person in the asset to be insured Explanation:Insurable interest refers to the financial interest of the person in the asset to be insured. It means that the insured must have a financial stake in the property or life being insured.
Q66.
Which of the following statements about medical underwriting is incorrect?

a.

It involves high cost in collecting and assessing medical reports.

b.

Current health status and age are the key factors in medical underwriting for health insurance.

c.

Proposers have to undergo medical and pathological investigations to assess their health risk profile.

d.

Percentage assessment is made on each component of the risk.

Discuss
Answer: (d).Percentage assessment is made on each component of the risk. Explanation:Percentage assessment is not a common practice in medical underwriting. Instead, medical underwriting involves assessing various factors, such as the proposer's health status, age, and other risk-related criteria.
Q67.
Choose the correct option. (i) In a group health insurance, any of the individual constituting the group could anti-select against the insurer. (ii) Group health insurance provides coverage only to employer-employee groups.

a.

Statement i is true and statement ii is false

b.

Statement ii is true and statement i is false

c.

Statement i and statement ii are true

d.

Statement i and statement ii are false

Discuss
Answer: (d).Statement i and statement ii are false Explanation:Both statements are false. In a group health insurance policy, it is not possible for any individual in the group to anti-select against the insurer, and group health insurance can cover various types of groups beyond just employer-employee groups.
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