Page 232 - IC38 GENERAL INSURANCE

Answers to Test Yourself
Answer 1
The correct option is III.
Underwriting is the process of risk selection and risk pricing.
Answer 2
The correct option is III.
The principle of utmost good faith in underwriting has to be followed by both
the insurer and the insured.
Answer 3
The correct option is I.
Insurable interest refers to the pecuniary or the financial interest of a person in
the asset he is going to get insured and can suffer financial loss in the event of
any damage to such asset.
Answer 4
The correct option is IV.
Percentage and numerical assessment is made on each component of the risk in
numerical rating method, and not medical underwriting method.
Answer 5
The correct option is IV.
In a group health insurance, when all members of a group are covered under a
group health insurance policy, the individuals constituting the group cannot
anti-select against the insurer.
In addition to employee-employer groups, insurers have provided group health
insurance coverage to varied type of groups such as: labour unions, trusts and
societies, professional associations, clubs and other fraternal organisations.

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