If Insurers Didn't Practice Underwriting,what Would Happen

question 72

Multiple Choice

If insurers didn't practice underwriting,what would happen?

• A)They would save a lot of time and money by not asking all those nosey questions
• B)They would make a handsome profit since they would get to sell a lot of insurance to a lot of people
• C)The insurance mechanism would become unfeasible
• D)The insurance mechanism would become the largest money making venture in the United States

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Definitions:

Perpetual Inventory System

An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory

Finished goods held for sale by a company in the ordinary course of business; also known as stock-in-trade.

Bank Credit Card Sales

Transactions in which the purchase is made using a bank-issued credit card, processed through the banking network.

Credit Card Expense

Charges and fees incurred from the use of a credit card, including purchases, cash advances, and interest charges.