III IC-22 Practice Questions - III IC-22 Life Insurance Underwriting Exam - III IC-22 Practice Questions - III IC-22 Life Insurance Underwriting Exam

Question 1

Which of the following best describes the principle of "equity" in life insurance underwriting?

Charging premiums that are proportional to the risk brought to the pool by the insured. Offering identical premium rates to all applicants regardless of their health status to maintain equality. Restricting policies to only those individuals who have no medical conditions. Giving premium discounts based on the social status or net worth of the proposer.

Correct Answer:

Charging premiums that are proportional to the risk brought to the pool by the insured.

Question 2

In the context of life insurance underwriting, what is the primary risk associated with "anti-selection" (adverse selection)?

The insurer underpricing risks due to errors in the actuarial tables. The reinsurer refusing to accept facultative risk shares. High-risk individuals purchasing insurance in larger proportions than standard-risk individuals. An increase in agent commissions leading to higher expense ratios.

Correct Answer:

High-risk individuals purchasing insurance in larger proportions than standard-risk individuals.

Question 3

The Numerical Rating System of underwriting, developed by Rogers and Hunter, operates on which of the following methodologies?

Evaluating risks based purely on the subjective opinion of a medical referee. Assigning risk scores based on the financial net worth of the proposer. Grouping applicants into only two categories: Standard and Declined. Setting a base value of 100 representing a standard risk, and adding debits for adverse factors and subtracting credits for favorable factors.

Correct Answer:

Setting a base value of 100 representing a standard risk, and adding debits for adverse factors and subtracting credits for favorable factors.

Question 4

Which of the following is considered a "standard age proof" by life insurance companies in India?

School leaving certificate or Matriculation certificate. Horoscope prepared at the time of birth. Self-declaration of age by the applicant. Certificate issued by a local village panchayat head.

Correct Answer:

School leaving certificate or Matriculation certificate.

Question 5

An applicant is evaluated under the Numerical Rating System. The base rating is 100. The underwriter adds a debit of 50 points for history of hypertension, a debit of 25 points for obesity, and grants a credit of 15 points for a favorable family history of longevity. What is the final risk rating of the applicant?

160 175 135 110

Correct Answer:

160

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About this Exam

Prepare with the III IC-22 Practice Questions - III IC-22 Life Insurance Underwriting Exam practice quiz. This question bank includes 100 questions covering underwriting, insurance, life, underwriter, and assured. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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III IC-22 Practice Questions - III IC-22 Life Insurance Underwriting Exam

This practice set contains 100 questions from the matching question bank and focuses on underwriting, insurance, life, underwriter, and assured. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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III IC-22 Practice Questions - III IC-22 Life Insurance Underwriting Exam

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