#1
What is the primary goal of insurance underwriting?
To assess risk and determine premium rates
ExplanationEvaluate risk and set premium rates.
#2
Which of the following is NOT a factor typically considered in insurance underwriting?
Blood type
ExplanationBlood type is not a usual underwriting factor.
#3
What does LTV stand for in insurance underwriting?
Loan-to-Value
ExplanationLTV stands for Loan-to-Value in underwriting.
#4
In insurance underwriting, what does 'subrogation' refer to?
Legal right of the insurer to pursue a third party responsible for a loss
ExplanationInsurer's legal right to go after responsible third party.
#5
What is the purpose of the Medical Information Bureau (MIB) in insurance underwriting?
To gather and share medical information among insurance companies
ExplanationCollect and share medical data among insurers.
#6
What is 'adverse selection' in insurance underwriting?
The tendency for individuals with higher risk to seek insurance
ExplanationHigher-risk individuals seeking insurance.
#7
What is the purpose of a 'pre-existing condition clause' in insurance policies?
To limit coverage for pre-existing medical conditions
ExplanationLimit coverage for existing medical conditions.
#8
What is a 'declined risk' in insurance underwriting?
A risk deemed too high to insure
ExplanationRisk considered too high for insurance coverage.
#9
What is 'retrocession' in reinsurance underwriting?
The transfer of risk from one reinsurer to another
ExplanationTransferring risk between reinsurers.
#10
What does 'catastrophe modeling' involve in insurance underwriting?
Modeling the financial impact of large-scale events on insurance companies
ExplanationPredicting financial impact of major events on insurers.
#11
What does 'moratorium underwriting' involve?
Delaying coverage for pre-existing conditions for a specified period
ExplanationPostponing coverage for pre-existing conditions.