Agent is primary underwriter as also field underwriter
Numerical method of underwriting is by far the most objective method
Risk in substandard lives is likely to be higher than standard lives on account of increased mortality risk
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is D. All of the above.
- Agent is primary underwriter as also field underwriter: The agent is the primary underwriter in the sense that they are the first person to assess the risk of a potential policyholder. They do this by gathering information about the policyholder’s health, lifestyle, and financial situation. The agent then submits this information to the insurance company, which makes the final decision on whether to issue a policy.
- Numerical method of underwriting is by far the most objective method: The numerical method of underwriting is a statistical approach to assessing risk. It uses a set of factors, such as age, health, and lifestyle, to calculate a risk score for each potential policyholder. The risk score is then used to determine the premium that the policyholder will pay.
- Risk in substandard lives is likely to be higher than standard lives on account of increased mortality risk: Substandard lives are those that are considered to be at a higher risk of death than standard lives. This is because they may have health problems, a risky lifestyle, or a low income. As a result, insurance companies charge higher premiums for substandard lives.
It is important to note that these are just general statements and that the specific underwriting process may vary from one insurance company to another.