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.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of L08 Life Insurance Underwriting. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

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L08 Life Insurance Underwriting MCQs | Page 7 of 7

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Q61.
Why might someone backdate their insurance policy to coincide with their birthday or anniversary?

a.

To receive a birthday or anniversary gift from the insurance company

b.

To confuse the insurance company

c.

To have an excuse to throw a party

d.

To make it easier to remember their premium due date

Discuss
Answer: (d).To make it easier to remember their premium due date Explanation:Backdating to coincide with important dates like birthdays or anniversaries can help policyholders remember their premium due date.
Q62.
What scenario might make someone consider backdating their insurance policy to the period of maximum earnings?

a.

When they want to avoid paying any premiums

b.

When their income is steady throughout the year

c.

When their income flow is not steady, and they want to make payments during the off-season

d.

When they want to increase the premium amount

Discuss
Answer: (c).When their income flow is not steady, and they want to make payments during the off-season Explanation:Backdating to the period of maximum earnings can be beneficial when an individual's income flow is not steady, and they prefer to make payments during the off-season.
Q63.
What is the purpose of risk classification in underwriting?

a.

To charge higher premiums for all policyholders

b.

To categorize individual lives based on their age

c.

To assign different risk classes based on the degree of risks posed by the lives

d.

To decline all insurance proposals

Discuss
Answer: (c).To assign different risk classes based on the degree of risks posed by the lives Explanation:Risk classification categorizes lives into different risk classes based on the degree of risks they pose.
Q64.
What is the term used for life insurance proposals that are selected without a medical examination?

a.

Non-standard proposals

b.

Non-medical proposals

c.

Sub-standard proposals

d.

Standard proposals

Discuss
Answer: (b).Non-medical proposals Explanation:Proposals selected for insurance without a medical examination are termed as non-medical proposals.
Q65.
What is one of the factors considered in medical underwriting?

a.

Moral hazard

b.

Policyholder's height

c.

Insured's occupation

d.

Large sum assured

Discuss
Answer: (a).Moral hazard Explanation:One of the factors considered in medical underwriting is moral hazard.
Q66.
Why is heredity history of importance in medical underwriting?

a.

Rich parents have healthy kids

b.

Certain diseases can be passed on from parents to children

c.

Poor parents have malnourished kids

d.

Family environment is a critical factor

Discuss
Answer: (b).Certain diseases can be passed on from parents to children Explanation:Heredity history is of importance in medical underwriting because certain diseases can be passed on from parents to children. This genetic factor can impact an individual's health and susceptibility to specific medical conditions.
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