[amp_mcq option1=”Judgment method” option2=”Numerical method” option3=”Any of the above method since an illness like diabetes does not play a major role in the underwriting process” option4=”Neither of the above method as diabetes cases are rejected outright” correct=”option1″]<\/p>\n
The correct answer is: A. Judgment method<\/strong><\/p>\n A judgment method is an underwriting method that relies on the underwriter’s experience and judgment to assess the risk of an applicant. This method is often used for applicants with complex medical histories or who are applying for high-value policies.<\/p>\n In the case of Sheena, who is suffering from acute diabetes, the underwriter is likely to use a judgment method to assess her risk. This is because diabetes is a chronic condition that can lead to serious health problems, such as heart disease, stroke, and kidney failure. The underwriter will need to consider Sheena’s medical history, her current health status, and her treatment plan to determine whether she is an acceptable risk for the insurance company.<\/p>\n The numerical method is an underwriting method that uses a set of rules and guidelines to assess the risk of an applicant. This method is often used for applicants with simple medical histories or who are applying for low-value policies.<\/p>\n The numerical method is not likely to be used in Sheena’s case because she has a complex medical history. The underwriter would need to use a judgment method to assess her risk.<\/p>\n Option C is incorrect because diabetes does play a major role in the underwriting process. As mentioned above, diabetes is a chronic condition that can lead to serious health problems. The underwriter will need to consider Sheena’s medical history, her current health status, and her treatment plan to determine whether she is an acceptable risk for the insurance company.<\/p>\n Option D is incorrect because diabetes cases are not rejected outright. The underwriter will need to use a judgment method to assess Sheena’s risk. If Sheena is an acceptable risk, she may be able to obtain insurance. However, the insurance company may charge her a higher premium or require her to take additional steps to manage her diabetes, such as seeing a doctor regularly and taking her medication as prescribed.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Judgment method” option2=”Numerical method” option3=”Any of the above method since an illness like diabetes does not play a major role in the underwriting process” option4=”Neither of the above method as diabetes cases are rejected outright” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-32291","post","type-post","status-publish","format-standard","hentry","category-insurance","no-featured-image-padding"],"yoast_head":"\n