Vidyalelo
Commerce · Q655

Insurance

Graduate and Post Graduate · Commerce · question 655

Q655

Pick out the correct statement.

A.
Personal history and family history of a proposer are equally important
Answer
B.
In a non-medical proposal family history is not asked for
C.
Large sum assured is not a factor to be considered in non-medical underwriting
D.
Moral Hazard is not relevant in nonmedical underwriting

Answer: Option A

Solution

Answer: Option A
Solution:
Personal history and family history of a proposer are equally important. Medical history is an important determinant of longevity and as such is an important consideration for the insurers. There are questions pertaining to the health status of family members of the life to be assured.