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Commerce · Q538

Insurance

Graduate and Post Graduate · Commerce · question 538

Q538

Pick out the incorrect sentence.

A.
Underwriting is risk assessment in a proposal on the life of the proposer for offering him life cover
B.
Prevention of selection against the insurer is the purpose of underwriting
C.
Underwriting is a needless exercise in today’s environment of inadequate coverage of population for life insurance
Answer
D.
Underwriting process defines and determines the premium chargeable on the proposal for covering risk

Answer: Option C

Solution

Answer: Option C
Solution:
Underwriting is a needed exercise in today’s environment of inadequate coverage of population for life insurance.