Examlex

Solved

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:

Credit Score

A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of the individual.

Reaffirmation Agreement

An agreement in which a debtor agrees to pay a debt even though it could have been discharged in bankruptcy.

Discharged

Released from liability; term applied to negotiable instrument liability that has terminated.

Cancel

The act of nullifying or terminating an agreement, subscription, or service.

Related Questions