Insurance - Study Mode

[#321] The main advantage of term insurance lies in
Correct Answer

(D) Price

Explanation

Solution: The main advantage of term insurance lies in Price. The premium for term plan is lower than that for cash value policies.

[#322] Survey and inspection of a property is essential
Correct Answer

(A) Before acceptance of risk to assess the risk for rating purpose

Explanation

Solution: Survey and inspection of a property is essential before the acceptance of risk to assess the risk for rating purpose. A survey is an inspection of a property.

[#323] Risk transfer through risk pooling is called
Correct Answer

(C) Insurance

Explanation

Solution: Risk transfer through risk pooling is called insurance. Loss prevention measures reduce the chance of occurrence of risk.

[#324] What are the two methods of underwriting?
Correct Answer

(C) Judgement and numerical

Explanation

Solution: Judgement and numerical are the two methods of underwriting. In the judgement method, subjective judgment is used, often relying on the expert opinion of a medical professional known as the medical referee, especially when the deciding case is complex.

[#325] _________ method of underwriting is suitable while deciding a complex case, e.g. whether to give insurance to someone who has acute diabetes.
Correct Answer

(D) Judgmental

Explanation

Solution: Judgmental method of underwriting is suitable while deciding a complex case, e.g. whether to give insurance to someone who has acute diabetes. Under this method, subjective judgment is used, often relying on the expert opinion of a medical professional known as the medical referee, especially when the deciding case is complex.