Vidyalelo
Commerce · Q907

Insurance

Graduate and Post Graduate · Commerce · question 907

Q907

What are the 2 methods of underwriting?

A.
Direct & indirect
B.
Accept or decline
C.
Judgement & Numerical
Answer
D.
Openended & closeended methods

Answer: Option C

Solution

Answer: Option C
Solution:
Judgement & Numerical are the 2 methods of underwriting.
Judgement Method: Under this methods, subjective judgement is used.
Numerical Method: Under this method underwriting assign positive rating points for all negative or adverse factors.