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.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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