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Which of the Following Statements About Underwriting Standards Is (Are)true

question 43

Multiple Choice

Which of the following statements about underwriting standards is (are) true?
I.One purpose of underwriting standards is to reduce adverse selection against the insurer.
II.Equitable rates should be charged so that each group of policyowners pays its own way in terms of losses and expenses.


Definitions:

Isolated

Detached or separated from others, often used to describe someone or something that is alone or remote.

Unrewarding Way

Approaches or methods that fail to provide satisfaction, success, or positive reinforcement.

Secure

Feeling safe, stable, and confident in oneself or in the context of relationships, indicating low anxiety and avoidance.

High-Risk

Situations, activities, or choices that carry a significant potential for negative outcomes or harm.

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