IC22 Mock Test Sample 18
Life insurance underwriting involves assessing various risks such as occupational, medical, and lifestyle factors. High-risk occupations relate to higher mortality and morbidity exposure. Underwriters may charge extra premiums based on medical, occupational, or avocational grounds. Certain health conditions like heart symptoms, chronic bronchitis, glaucoma, and thyroid disorders influence decisions. Systems like automated underwriting and numerical rating methods improve efficiency. Reinsurance treaties include clauses for dispute resolution and error handling. Some risks may lead to exclusions, postponement, or standard acceptance. Financial underwriting ensures affordability, and proposals beyond capacity may be modified or rejected to maintain sound risk management and insurer stability.
1. Which occupations are categorized as “high risk occupations” in life insurance underwriting?
a) Occupations with the risks of mortality
b) Occupations with the risks of high income
c) Occupations with the risks of morbidity
d) Both (a) & (c)
2. Under which underwriting method, a group of employees are assigned the task of screening the applications and approving them for issuance of the policy documents?
a) Black channel underwriting
b) Jet unit underwriting
c) Red channel underwriting
d) Automated rule engine
3. When a risk is analysed and found to be greater than standard one, the underwriter may opt for charging an extra premium on ground of:
a) Medical grounds
b) Avocational ground
c) Occupational ground
d) Combination of above reasons
4. Which of the following type of disorder associated with cardiovascular system needs further clarification of the insurance proposal form?
a) Heart murmur
b) Breathlessness
c) Chest pain
d) Syncope
5. Which of the following can be a cause for chronic bronchitis?
a) Exposure to smoking
b) Blood transfusion
c) Exposure to an individual suffering from bronchitis
d) Heredity disorder
6. Which among the below is the leading cause of irreversible blindness?
a) Cataract
b) Diabetes
c) Glaucoma
d) Hypertension
7. Which of the following organ is not a component of the urinary system?
a) Liver
b) Kidney
c) Urethra
d) Urinary bladder
8. _____ is an activity where the pilot flies in the air with the help of the non-motorized foot launched wing.
a) Micro-light flying
b) Hang gliding
c) Parachuting
d) Scuba diving
9. Which among the following is an India based reinsurer?
a) Munich-Re
b) General Cologne-Re
c) G.I.C.
d) SCOR SE
10. Which is the inner most layer of the meninges, which supply the tissues of the brain and the spinal cord?
a) The pia mater
b) The pericardium
c) The dura mater
d) The arachnoid
11. What can be the underwriting ratings for applicants who are diagnosed with only confirmed Irritable Bowel Syndrome?
a) Underwriting is done with high ratings
b) Underwriting is done with standard ratings
c) Underwriting is done with standard ratings but with some exclusion
d) Underwriting is not done (declined)
12. Which period allows the client to get better terms of acceptance after the treatment or waiting phase is over?
a) Postponement period
b) Deferment period
c) Treatment period
d) Any (a) or (b)
13. __________ is also known as Involuntary Nervous System.
a) Central Nervous System
b) Somatic Nervous System
c) Autonomic Nervous System
d) Spinal Cord
14. The condition caused by gastric secretion backing up into the esophagus is:
a) Diverticulitis
b) Gastric ulcer
c) Gastroesophageal reflux
d) Peristalsis
15. Under which condition the life insurance company can exclude critical illness rider and provide only base cover?
a) When the mortality risk is high
b) When the morbidity risk is high
c) When the mortality risk is low
d) When the morbidity risk is low
16. Enlargement of the thyroid tissues is known as_____.
a) Goiter
b) Cretinism
c) Acromegaly
d) Adenomas
17. Which child insurance plan offers periodic payments at specific intervals?
a) Unit-linked insurance plans
b) Traditional insurance plan
c) Child money-back plan
d) Child endowment plan
18. Which of the following is an important part of the reinsurance treaty?
a) Arbitration methods
b) Dispute resolution methodology
c) Error and omission clause
d) All the above
19. Which method of insurance underwriting was originally devised in the USA in the 1960s and gained popularity worldwide?
a) Fundamental rating method
b) Judgment method
c) Numerical rating method
d) Statistical rating method
20. If a prospect proposes for ₹25 crores cover but cannot afford the premium, what will the company do?
a) Consider it as fraud
b) Suggest another suitable plan
c) Reject the proposal
d) Any (b) or (c)
