Q120
When an underwriter has to be very careful?
A.
When sum insured is very small
B.
When sum insured is very large
AnswerC.
When income is very small
D.
When income is very high
Answer: Option B
Solution
Answer: Option B
Solution:
An underwriter is an investment bank that helps companies introduce their new securities to the market. In the insurance business, an underwriter is a company liable for insured losses in return for a fee (premium).