Multiple choice

The objectives of underwriting are achieved, by deciding:

  1. the level of acceptability

  2. Higher premium

  3. The equality of all the risks

  4. Lower premium for higher claim
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A Correct answer
Explanation

A health underwriter needs to understand the risk profile of the insured, age, medical aspects, fitness levels and family history and measure the effect of each factor affecting the risk. The objectives of underwriting are achieved, in short, by deciding the level of acceptability, adequacy of premium and other terms.

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