Underwriting Made Simple

Which of the following sentence is not correct related to an underwriter?

• Underwriter does what a doctor does - gets relevant information from the applicant through various sources.

• Underwriter analyses the gathered data and then assesses the risk

• Underwriter then takes a decision whether the case is acceptable or not.

• Underwriter determines whether the claim will be paid by insurer or not

Life Insurer needs a Selector & a Selection process to sort the healthy & unhealthy people & ensure that every new entrant into the pool has similar exposure to the risks as the others.

• This statement is True

• This statement is false

Life Insurance underwriting is the process of assessing, selecting, classifying, evaluating, measuring & rating the level of risk associated with an individual & then taking a decision whether to select that risk or not & if selected, also deciding the terms of acceptance.

• This statement is wrong

• This statement is right

Which of the following Factor is not Considered in Life Insurance Underwriting

• Health Related

• Life Style & habits

• Occupation

• Level of happiness

Age is an example of

• Physical Hazard

• Occupational Hazard

• Moral Hazard

Coal Miner’s job is riskier than that of a person working in an office. This is an example of

• Physical Hazard

• Occupational Hazard

• Moral Hazard

Scuba diving is an example of

• High risk avocation

• Low risk avocation

Climate change is an example of

• Residential Risk

• Occupational risk

Which of the following is not a tool for Medical Underwriting

• Medical Reports

• Attending Physician’s Statement

• Medical Check-up Questionnaire

• Form 16

__________________ is the process of determining the amount of insurance cover that is justified for a person with regards to his/her income.

• Financial Underwriting

• Medical Underwriting

• Non Medical Underwriting