Which of the Following Is True of Insurance Underwriting

question 76

Multiple Choice

Which of the following is true of insurance underwriting?

• A)Insurance underwriting is any activity that reduces the chance that a loss will occur.
• B)Insurance underwriting is a process used to avoid an act that would create a risk.
• C)Insurance underwriting is a process that helps insurers determine the insurance needs of the potential insured.
• D)Insurance underwriting is any activity that lessens the severity of loss once it occurs.
• E)Underwriters design rate classification schedules so that people pay premiums that reflect their chance of loss.

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Definitions:

Production Possibilities Curve

A graph representing the maximum combination of goods and services that can be produced with available resources and technology.

Emigration

The act of leaving one's own country to settle permanently in another.

Occupational Groups

Categories of jobs that involve similar tasks and require similar skills, training, education, or qualifications.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with a given set of resources and technology, assuming efficient use of resources.