IC22 Mock Sample 14
Insurance underwriting evaluates risk using medical, financial, and lifestyle factors to classify applicants. Key tools include mortality and morbidity tables, medical tests, and structured processes for decision-making. Reinsurance helps insurers manage large risks and remain competitive. Medical knowledge of diseases like diabetes, hyperthyroidism, and infections plays a vital role in risk assessment. Concepts such as diminishing lien, exclusions, and riders determine policy benefits. Systems like cardiovascular and digestive functions are relevant in medical underwriting. Overall, underwriting ensures fair pricing, minimizes adverse selection, and protects insurers while providing appropriate coverage based on individual risk profiles.
1. Which of the following states the main role of the cardiovascular system?
a) Only (ii)
b) Only (iii)
c) Only (i) & (ii)
d) Only (ii) & (iii)
2. Which test diagnoses impaired glucose tolerance?
a) Morning fasting glucose test
b) Oral glucose tolerance test
c) Prothrombin test
d) Glycosylated haemoglobin test
3. Find the correct statement about sub-standard risk.
a) Higher risk, cannot be insured at standard rates
b) Higher risk, can be insured at standard rates
c) Higher risk, called standard risk
d) Lower risk but not insurable at standard rates
4. Which factors are NOT analysed for underwriting?
a) Occupation
b) Lifestyle and habits
c) Health factors
d) Foreign travelling
5. 25% diminishing lien for 5 years, death in 3rd year → payout?
a) 90% of sum assured
b) 95% of sum assured
c) 85% of sum assured
d) 80% of sum assured
6. Morbidity rates are used in designing____.
a) Health insurance
b) Long-term care insurance
c) Short-term cover
d) Both (a) & (b)
7. Muscular tube from pharynx to stomach is____.
a) Esophagus
b) Trachea
c) Larynx
d) Fundus
8. Acute otitis media infection can spread to____.
a) Mastoid
b) Labyrinthitis
c) Meningitis
d) All (a), (b) & (c)
9. Kidney infection is called____.
a) Pyelonephritis
b) Cystitis
c) Glomerulonephritis
d) Calculi
10. Brain part controlling appetite & temperature is____.
a) Cerebellum
b) Hypothalamus
c) Thalamus
d) Cerebrum
11. What helps small insurers manage risk?
a) Skilled executives
b) Competitive strategies
c) Premium profit
d) Reinsurance arrangements
12. Correct underwriting process sequence is____.
a) Risk selection → Proposal → Policy → Premium
b) Proposal → Risk assessment → Decision → Policy
c) Policy → Medical → Risk → Premium
d) Premium → Policy → Risk → Proposal
13. Probability of death before next birthday is shown by____.
a) Actuarial table
b) Statistical data
c) Mortality table
d) Morbidity rate
14. Most common cause of hyperthyroidism is____.
a) Thyroid cancer
b) Hashimoto’s thyroiditis
c) Graves’ disease
d) Goitre
15. ADB rider: loss of limbs but survival → claim?
a) Lower sum assured
b) Hospital expenses only
c) Full sum assured
d) No benefit
16. Which is NOT a feature of employer-employee insurance?
a) Maturity benefit to employer
b) Retain employees
c) Employer is proposer
d) Both (a) & (b)
17. Non-medical grids depend on____.
a) Age & premium
b) Premium & sum assured
c) Age & sum assured
d) Risk & sum assured
18. KYC stands for____.
a) Knowledge your clients
b) Know your customer
c) Knowing by checking
d) Knowledge of certificate
19. Chemical exposure may cause____.
a) Skin diseases
b) Malignant diseases
c) Respiratory diseases
d) All the above
20. Exclusions based on health & risk profile are____.
a) Specific exclusions
b) General exclusions
c) Special exclusions
d) Combined exclusions
