L08 Life Insurance Underwriting MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on L08 Life 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 L08 Life 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 L08 Life Insurance Underwriting mcq questions that explore various aspects of L08 Life Insurance Underwriting problems. Each MCQ is crafted to challenge your understanding of L08 Life 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 L08 Life Insurance Underwriting MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

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L08 Life Insurance Underwriting MCQs | Page 2 of 7

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Q11.
What is the primary role of an agent in the field level underwriting process?

a.

Calculating insurance premiums

b.

Providing medical examinations

c.

Gathering information to assess applicant suitability

d.

Deciding policy terms and conditions

Discuss
Answer: (c).Gathering information to assess applicant suitability Explanation:The agent's primary role in field level underwriting is to gather information to assess the suitability of the applicant for insurance coverage.
Q12.
Why is the agent considered a significant figure in the underwriting process?

a.

To sell insurance policies to applicants

b.

To monitor fraudulent activities

c.

To calculate premiums accurately

d.

To complete medical examinations

Discuss
Answer: (b).To monitor fraudulent activities Explanation:The agent plays a significant role in monitoring fraudulent activities and ensuring the accuracy of information provided in the proposal form.
Q13.
Where does primary underwriting, also known as field level underwriting, typically take place?

a.

In the underwriting department

b.

At the insurance company's main office

c.

In the agent's office or through a company representative

d.

In a medical examination facility

Discuss
Answer: (c).In the agent's office or through a company representative Explanation:Primary underwriting (field level underwriting) occurs in the agent's office or through a company representative.
Q14.
What is the main level of underwriting known as?

a.

Primary underwriting

b.

Agent-level underwriting

c.

Field underwriting

d.

Department-level underwriting

Discuss
Answer: (d).Department-level underwriting Explanation:The main level of underwriting is known as department-level underwriting.
Q15.
Who is responsible for considering all relevant data and deciding whether to accept a proposal for life insurance at the department level?

a.

Policyholders

b.

Insurance agents

c.

Underwriting specialists

d.

Medical examiners

Discuss
Answer: (c).Underwriting specialists Explanation:Underwriting specialists at the department level consider all relevant data and make decisions regarding the acceptance of life insurance proposals.
Q16.
Which underwriting method relies on subjective judgment, especially for complex cases?

a.

Numerical Method

b.

Complex Underwriting

c.

Judgment Method

d.

Expert Opinion

Discuss
Answer: (c).Judgment Method Explanation:The judgment method involves the use of subjective judgment, particularly for complex cases.
Q17.
When using the numerical method, what type of points are assigned to negative or adverse factors?

a.

Negative points

b.

Positive points

c.

Average points

d.

Neutral points

Discuss
Answer: (b).Positive points Explanation:Under the numerical method, underwriters assign positive points to negative or adverse factors.
Q18.
What is the sum total of positive and negative points, often referred to as?

a.

Risk Score

b.

Underwriting Rating

c.

Extra Mortality Rating (EMR)

d.

Underwriting Points

Discuss
Answer: (c).Extra Mortality Rating (EMR) Explanation:The sum total of positive and negative points is referred to as Extra Mortality Rating (EMR).
Q19.
In the judgment method, when might an underwriting department seek the expert opinion of a medical doctor?

a.

For routine cases

b.

In every case

c.

Only in cases involving cardiac ailments

d.

In complex cases, such as situations in disturbed areas

Discuss
Answer: (d).In complex cases, such as situations in disturbed areas Explanation:In complex cases, such as those involving situations in disturbed areas, the underwriting department may seek the expert opinion of a medical doctor.
Q20.
What does a higher EMR indicate in underwriting?

a.

Lower risk

b.

Average risk

c.

Higher risk

d.

No risk

Discuss
Answer: (c).Higher risk Explanation:A higher Extra Mortality Rating (EMR) indicates that the life is substandard and represents a higher risk.
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