Page 234 - IC38 GENERAL INSURANCE
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II. Analysis of difficult or doubtful cases is not possible on the basis of
numerical points without medical referees or experts.
III. This method can be used by persons without any specific knowledge of
medical science.
IV. It ensures consistency between the decisions of different underwriters.
Answers to Self-Examination Questions
Answer 1
The correct option is II.
The morbidity of an individual is not affected by their spouse‟s job, though their
own occupation is one of the important factors which can affect their
morbidity.
Answer 2
The correct option is I.
According to the principle of indemnity, insured is compensated for the actual
costs or losses, but to the extent of the sum insured.
Answer 3
The correct option is IV.
The primary source of information about an applicant, for the underwriter is his
proposal form or application form, in which all the critical information related
to the health and personal details of the proposer are collected.
Answer 4
The correct option is III.
The underwriting process is completed when the received information is
carefully assessed and classified into appropriate risk categories.
Answer 5
The correct answer is II.
A more careful analysis of difficult or doubtful cases is made possible by
numerical rating method because past experience with reference to the
doubtful points is expressed numerically in terms of a known standard and
shadings.
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