All of the Following Are Arguments in Favor of Using

question 42

Multiple Choice

All of the following are arguments in favor of using an applicant's credit record in personal lines underwriting EXCEPT

• A)Most consumers have good credit records and benefit when credit history is used as a rating factor.
• B)Use of credit data in underwriting or rating discriminates against certain groups.
• C)Underwriting and rating may be more consistent if applicants' credit histories are considered.
• D)There is high correlation between an applicant's credit record and future claims experience.

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Definitions:

Organization

A structured group of people working together to achieve common goals through a division of labor and a hierarchy of authority.

Chief Operating Officer

A senior executive responsible for managing the day-to-day administrative and operational functions of a company.

Administrative Skills

Abilities related to managing operations, carrying out organizational policies, and ensuring the smooth functioning of businesses.

Katz's Model

A framework proposing three foundational skills necessary for effective management: technical, human, and conceptual skills.