The correct answer is: C. Judgement and numerical
Underwriting is the process of assessing the risk of an insurance applicant and deciding whether to accept or decline the application. There are two main methods of underwriting: judgement underwriting and numerical underwriting.
Judgement underwriting is based on the underwriter’s experience and judgment. The underwriter will consider a variety of factors, such as the applicant’s age, health, occupation, and financial situation, to assess the risk.
Numerical underwriting is based on a set of rules and guidelines. The underwriter will use a scoring system to assess the applicant’s risk. The score will be based on the applicant’s answers to a series of questions, as well as other factors, such as the applicant’s credit score.
Option A: Direct and indirect is not a correct answer. Direct underwriting is when the insurance company sells the policy directly to the applicant. Indirect underwriting is when the insurance company sells the policy through a broker or agent.
Option B: Accept and decline is not a correct answer. This is the outcome of the underwriting process, not the method of underwriting.
Option D: Open-ended and close-ended is not a correct answer. This is the type of question that is asked during the underwriting process, not the method of underwriting.