IC22 Mock Test Sample 11
Life insurance underwriting involves assessing, selecting, and classifying risks based on medical and non-medical factors. Key considerations include diseases like diabetes, hypertension, and obesity, along with financial and occupational risks. Tools like EMR and rating manuals help evaluate mortality risk. Medical knowledge of body systems, disorders, and diagnostic terms is essential for accurate risk assessment. Reinsurance supports insurers in managing large risks. Concepts such as Human Life Value and multiple methods help determine adequate insurance coverage. Understanding underwriting decisions—acceptance, postponement, or rejection—ensures balanced risk management while protecting both insurer and policyholder interests.
1. Life Insurance Underwriting is the process of _________.
a) Assessing
b) Selecting
c) Classifying
d) Evaluating & Measuring
2. In reinsurance who becomes the policyholder?
a) Insured person
b) Ceding company
c) Reinsurer
d) Both (a) & (b)
3. If an individual is suffering from obesity, high blood pressure and diabetes, which adverse factor should be considered?
a) Diabetes
b) Obesity
c) High blood pressure
d) Combined effect of all three
4. Where are most of the cardiac muscles of the heart found?
a) Pericardium
b) Myocardium
c) Epicardium
d) Endocardium
5. Which type of Hepatitis spreads through infected blood or semen?
a) Hepatitis A
b) Hepatitis B
c) Hepatitis D
d) Hepatitis E
6. If predictive mortality does not deviate much from mortality tables, what is the decision?
a) Accept the risk
b) Accept with special terms
c) Decline the risk
d) Postpone the risk
7. Which is not a part of the bronchial tree?
a) Bronchi
b) Bronchioles
c) Alveoli
d) Larynx
8. Acceptance of sub-standard risk depends on___.
a) Purpose of insurance
b) Severity of risk
c) Type of risk
d) All the above
9. Clinical review of a diabetic applicant is required to___.
a) Check diabetic stage
b) Look for complications
c) Assess damage
d) All the above
10. EMR stands for?
a) Excess morbidity rate
b) Extra mortality rise
c) Extra mortality rate
d) Excessive morbidity rise
11. ______ refers to a fleet of ships transporting cargo and passengers.
a) Merchant navy
b) Carriers
c) Special forces
d) Coast guards
12. Pre-diabetes most commonly leads to which type?
a) Type 1 diabetes
b) Type 2 diabetes
c) Hyperglycemia
d) Diabetes mellitus
13. Simplest method to calculate insurance cover?
a) Multiple of salary method
b) Need analysis method
c) Human life value method
d) None of the above
14. Human Life Value method considers___.
a) Discount factor
b) Income growth
c) After-tax earnings
d) All the above
15. Which is a win-win situation for insurer and applicant?
a) Insurance with extra loading
b) Acceptance with exclusions
c) Postponement followed by reassessment
d) High interest cover
16. Which statement is NOT true regarding Diabetes Mellitus?
a) OGTT not commonly used
b) Glucose in urine confirms diabetes
c) Old medical records required
d) Clinical assessment is important
17. Example of intestine disorder?
a) Asthma
b) Diabetes
c) Tuberculosis
d) Irritable Bowel Syndrome (IBS)
18. Presence of blood in urine is called___.
a) Proteinuria
b) Albuminuria
c) Haematuria
d) Creatinine
19. Which statement is true about rating manuals?
a) Numerical ratings derived
b) Contains mortality data
c) Based on research
d) All the above
20. Expulsion of waste from body through anus is called___.
a) Digestion
b) Absorption
c) Defecation
d) Rejection
