What are the two methods of underwriting?

A Direct and indirect
B Accept and decline
C Judgement and numerical
D Open-ended and close-ended

Correct Answer: Judgement and numerical

Judgement and numerical are the two methods of underwriting. In the judgement method, subjective judgment is used, often relying on the expert opinion of a medical professional known as the medical referee, especially when the deciding case is complex.
Bissoy MCQ
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Related Questions

What is the meaning of the term non-medical underwriting?
A Taking health insurance
B Buying a medical insurance without medical exam
C Buying a life insurance without medical exam
D None of the three
Number of cases which gets accepted by the underwriting under Non-medical are –
A Very small
B Small
C Large
D Not significant
Which of the following factors are taken into account for financial underwriting?
A Income
B Occupation
C Lifestyle/habits
D All of the above
_________ method of underwriting is suitable while deciding a complex case, e.g. whether to give insurance to someone who has acute diabetes.
A Instrumental
B Panelling
C Non-medical
D Judgmental
In this method of underwriting, the underwriter gives rating points for all the negative or adverse factors, totals them and decides extra mortality rating. Which method are we talking about?
A Biometric rating
B Judgmental rating
C Clinical rating
D Numerical rating
Which of the following is the most common underwriting decision?
A To accept with extra premium
B To reject proposal
C Lien
D To accept at an ordinary rate
Which of the following is not an underwriting decision?
A Risk acceptance at standard rates
B Declinature of risk
C Postponement of risk
D Claim rejection
Under what method of underwriting does an underwriter assign positive rating points for all negative or adverse factors (negative points for any positive or favourable factors)?
A Judgment
B Arbitrary
C Numerical rating
D Single step
Which of the below insurance proposal is not likely to qualify under non-medical underwriting?
A Savita, aged 26 years, working in an IT company as a software engineer
B Mahesh, aged 50 years, working in a coal mine
C Satish, aged 28 years, working in a bank and has applied for an insurance cover of Rs. 1 crore
D Pravin, aged 30 years, working in a departmental store and has applied for an endowment insurance plan for a tenure of 10 years
Who of the following may not qualify for a nonmedical underwriting?
A An IT manager in TCS
B A bank officer for a large sum proposed
C A worker aged 50 in an underground coal mine
D A manager in a shopping mall

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