To accept with extra premium
To reject proposal
Lien
To accept at an ordinary rate
Answer is Right!
Answer is Wrong!
The correct answer is: To accept at an ordinary rate.
Underwriting is the process of assessing the risk of an insurance applicant and deciding whether to offer them insurance and, if so, at what rate. The most common underwriting decision is to accept the applicant at an ordinary rate. This means that the applicant is considered to be a low-risk and will be charged a standard rate for insurance.
The other options are:
- To accept with extra premium: This is when the applicant is considered to be a higher-risk and will be charged a higher rate for insurance.
- To reject proposal: This is when the applicant is considered to be too high-risk and will not be offered insurance.
- Lien: This is a legal claim against an asset that can be used to satisfy a debt. It is not an underwriting decision.
I hope this helps! Let me know if you have any other questions.