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

question 22

Multiple Choice

Which of the following statements about underwriting policy is (are) true?
I.A company must establish an underwriting policy consistent with company objectives.
II.Underwriting policy is usually subjective and allows the underwriter considerable flexibility with respect to lines written and forms used.

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

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Definitions:

Cooperate

To work or act together towards a common goal or benefit.

Sleeper Effect

A delayed increase in the impact of a message that occurs when an initially discounted message becomes effective, as we forget its source or its source becomes less important over time.

Internal Attribution

The inference that a person's behavior is due to personal factors like character, motive, or belief.

Consistency Information

Information that supports the reliability or stability of a person's behavior or attitudes over time.