IC22 Mock Test Sample 12
Insurance underwriting relies on structured rating manuals developed by insurers and actuaries to assess risks scientifically. It involves evaluating medical, financial, and occupational factors before issuing policies. Tools like numerical rating improve consistency and efficiency, while reinsurance helps insurers manage large risks. Medical knowledge such as glaucoma, anaemia, and CAD plays a key role in underwriting decisions. Processes can be centralized or decentralized, and decisions depend on severity of conditions. Methods like multiple of salary help determine coverage. Overall, underwriting ensures balanced risk selection, protects insurers from excessive claims, and provides fair coverage to policyholders based on their individual risk profile.
1. Rating guides and manuals for insurance underwriting are formulated by____.
a) Only (iii) & (iv)
b) Only (i) & (ii)
c) Only (ii) & (iii)
d) Only (i) & (iv)
2. In reinsurance, who shares/earns the insurance commission for passing on the insurance business?
a) Insurer
b) Reinsurer
c) Reinsurance broker
d) Both (a) & (c)
3. Which gland produces thyroid stimulating hormone?
a) Thyroid gland
b) Pituitary gland
c) Kidney
d) Hypothalamus
4. Which of the following is NOT a function of the digestive system?
a) Digestion
b) Absorption
c) Integration
d) Defecation
5. Which document need not be reviewed by the underwriter?
a) Copy of health check-up at age 1
b) Medical treatment history
c) Age-proof documents
d) Temporary binding receipt
6. Underwriting process is complete once____.
a) Proposal details collected
b) Medical tests completed
c) Risk assessment completed
d) Policy is issued
7. Mortality rate is usually measured for____.
a) A year
b) A month
c) 15 days
d) 3 months
8. Gastric juices secreted by stomach include____.
a) Hydrochloric acid
b) Digestive enzymes
c) Saliva
d) Both (a) & (b)
9. Factors influencing underwriting decision in glaucoma include____.
a) Cause of glaucoma
b) Effect on occupation
c) Degree of impairment
d) All (a), (b) & (c)
10. Insurance company communicates acceptance through____.
a) Policy contract
b) FPR
c) Proposal form
d) Insurance application
11. The coloured part of the eye is____.
a) Retina
b) Cornea
c) Iris
d) Lens
12. Which test is not used in India as pre-insurance screening?
a) Gene tests
b) Medico-legal test
c) Fasting plasma glucose
d) ECG
13. Inadequate oxygen supply leads to symptoms of____.
a) Low RBC production
b) Anaemia
c) Blood loss
d) RBC destruction
14. Acute otitis media is inflammation of____.
a) Middle ear
b) Inner ear
c) Outer ear
d) Ear canal
15. Centralized underwriting processing is done at____.
a) Head office
b) Regional office
c) Branch office
d) Both (a) & (b)
16. Insurance proposal is declined in CAD when____.
a) Chest pain present
b) Hypertension present
c) Diabetes present
d) Digestive problem present
17. Strong family history of cancer requires which test?
a) Imaging tests
b) Gene tests
c) MRI
d) X-rays
18. Insurance cover based on age and salary is calculated by____.
a) Needs analysis method
b) Income replacement method
c) Multiple of salary
d) Dependent benefit method
19. Which is NOT an advantage of Numerical Rating Method?
a) Eliminates personal judgment
b) Assesses combined risks
c) Charges level extra premium
d) Improves efficiency
20. Facultative reinsurance is____.
a) Based on individual risk analysis
b) Automatic acceptance
c) Only for property insurance
d) Annual agreement
