Insurance - Study Mode

[#586] Which of the following is not an underwriting decision?
Correct Answer

(D) Claim rejection

Explanation

Solution: Claim rejection is not an underwriting decision. If an insurance company has reason to believe that any information pertaining to these parameters was suppressed, it can reject the claim.

[#587] Which of the following is not a standard age proof?
Correct Answer

(C) Horoscope

Explanation

Solution: Horoscope is not a standard age proof. A horoscope is an astrological chart or diagram representing the positions of the Sun, Moon, planets, astrological aspects and sensitive angles at the time of an event, such as the moment of a person's birth.

[#588] Which of the following condition will affect a person’s insurability negatively?
Correct Answer

(B) Banned substance abuse

Explanation

Solution: Banned substance abuse condition will affect a person’s insurability negatively.

[#589] Under what method of underwriting does an underwriter assign positive rating points for all negative or adverse factors (negative points for any positive or favourable factors)?
Correct Answer

(C) Numerical rating

Explanation

Solution: Under Numerical rating method of underwriting does an underwriter assign positive rating points for all negative or adverse factors (negative points for any positive or favourable factors). In such situations, the department may get the expert opinion of a medical doctor who is also called a medical referee.

[#590] Under risk classification, _________ consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table.
Correct Answer

(A) Standard lives

Explanation

Solution: Under risk classification, Standard lives consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table. Mortality tables are the most important basis for charging the premium.