Preview Questions Underwriter | Role Specific Skill

Question 1: How should an underwriter ensure compliance with the Fair Lending Act while underwriting policies?

Which action should you take?

Choose only one option

Ensure underwriting criteria are applied consistently to all applicants

Approve policies based on personal biases

Deny policies to high-risk applicants only

Apply lenient underwriting standards to attract more clients

Question 2: What is the key consideration when reviewing a health insurance policy for underwriting decisions?

Which action should you take?

Choose only one option

Ensuring the policy offers the highest level of coverage possible

Ensuring that the policy covers all essential medical services while aligning with risk tolerance

Determining the client's age and occupation as the only factors

Focusing solely on the client's premium payment history

Question 3: What is the primary regulatory framework under which life insurance underwriting operates in most jurisdictions?

Which action should you take?

Choose only one option

International Financial Reporting Standards (IFRS)

US Generally Accepted Accounting Principles (GAAP)

Prudential Regulation Authority (PRA)

Solvency II

Question 4: In the context of marine insurance, how should an underwriter approach the risk analysis for a shipping company with global operations?

Which action should you take?

Choose only one option

By considering the company's shipping routes, cargo types, and the risks associated with international waters

By evaluating the financial history of the shipping company

By analyzing the cargo value against the premium amount

By focusing solely on the ship's age and its maintenance record

Question 5: In claims assessment, how should an underwriter handle claims related to pre-existing conditions?

Which action should you take?

Choose only one option

By offering a lower payout for all claims involving pre-existing conditions

By reviewing the policy's exclusion clauses and the claimant's medical records to assess the relationship between the claim and the pre-existing condition

By denying the claim outright

By ignoring the pre-existing conditions and focusing on the event

Question 6: When reviewing a life insurance policy, which of the following is most critical to ensure proper coverage?

Which action should you take?

Choose only one option

The premium structure and its effect on company profitability

The policy's death benefit and exclusions

The cash surrender value and loan provisions

The beneficiary designation and potential conflicts of interest