#1
What does underwriting refer to in insurance?
Calculating premiums
Assessing risk and determining coverage
Processing claims
Advertising insurance policies
#2
Which of the following is NOT a factor considered during insurance underwriting?
Age
Gender
Ethnicity
Occupation
#3
What is the purpose of risk assessment in insurance underwriting?
To minimize profits
To determine the likelihood of claims
To exclude certain demographics
To increase premiums
#4
What is the role of actuaries in insurance underwriting?
Marketing insurance policies
Assessing and managing risk
Processing claims
Selling insurance to clients
#5
What is the primary goal of insurance underwriting?
To minimize profits
To maximize claims
To assess and manage risk
To exclude certain demographics
#6
Which of the following is NOT a type of insurance underwriting?
Life insurance underwriting
Health insurance underwriting
Property insurance underwriting
Sales insurance underwriting
#7
What is 'reinsurance' in the context of insurance underwriting?
Insurance for businesses
Insurance for individuals
Insurance purchased by insurance companies
Insurance for high-risk clients
#8
What is adverse selection in insurance underwriting?
Process of selecting high-risk clients
Process of selecting low-risk clients
Tendency for high-risk individuals to seek insurance more than low-risk individuals
Tendency for low-risk individuals to seek insurance more than high-risk individuals
#9
What is 'moral hazard' in insurance underwriting?
The intentional creation of risk
The unintentional creation of risk
The tendency for insured parties to behave differently than they would without insurance
The tendency for insurers to charge higher premiums
#10
What does 'loss ratio' indicate in insurance underwriting?
The percentage of premiums paid as claims
The percentage of profits made by the insurer
The number of claims rejected by the insurer
The total premium income
#11
What does 'policyholder' refer to in insurance underwriting?
The person assessing risk
The person purchasing insurance
The person denying claims
The person selling insurance
#12
What is 'catastrophe modeling' in insurance underwriting?
Modeling insurance premiums
Modeling natural disasters
Modeling customer behavior
Modeling insurance sales
#13
Which of the following is a key principle of insurance underwriting?
Equal treatment of policyholders
Preventing claims
Maximizing profits
Rejecting all high-risk applicants
#14
What is the purpose of risk selection in insurance underwriting?
To select only low-risk individuals for insurance
To select only high-risk individuals for insurance
To balance the risk pool and ensure profitability
To maximize the number of claims
#15
What is 'retention' in insurance underwriting?
The percentage of claims paid by the insurer
The percentage of profits kept by the insurer
The process of renewing insurance policies
The amount of risk retained by the insurer
#16
What is 'capacity' in insurance underwriting?
The amount of insurance a company can underwrite
The amount of risk retained by the insured
The calculation of insurance reserves
The negotiation of insurance contracts
#17
What is 'renewal underwriting' in insurance?
The process of assessing risks for new insurance applicants
The process of reviewing and updating existing policies
The process of marketing insurance products to potential customers
The process of denying renewal of insurance policies