Underwriting is done only when there is a medical examination
Medical examination is necessary before a policy can be issued
Both the statements above are correct
Both the statements above are wrong
Answer is Right!
Answer is Wrong!
The correct answer is: D. Both the statements above are wrong.
Underwriting is the process of assessing the risk of an insurance policy and determining the appropriate premium to charge. It is done by gathering information about the insured, such as their age, health, and occupation. Medical examination is not always necessary for underwriting, but it may be required for certain types of policies, such as life insurance or long-term care insurance.
Here is a brief explanation of each option:
- A. Underwriting is done only when there is a medical examination. This is not always the case. Underwriting can be done without a medical examination, but it may be required for certain types of policies, such as life insurance or long-term care insurance.
- B. Medical examination is necessary before a policy can be issued. This is also not always the case. Medical examination may be required for certain types of policies, but it is not always necessary.
- C. Both the statements above are correct. This is incorrect because both statements are not always true.
- D. Both the statements above are wrong. This is the correct answer because both statements are not always true.