Examkin

Soru

Zorluk: OrtaRisk Classification

A life insurance provider receives an application from a prospect who demonstrates exceptional physical health and possesses a flawless family medical history. The applicant's primary profession, however, is commercial underwater welding. According to standard risk classification principles, how will the insurer most likely categorize and price this policy?

  1. A
    Classified as a preferred risk, because the applicant's outstanding health profile completely overrides external workplace hazards.
  2. B
    Classified as a standard risk, provided the insurer issues a rider to explicitly exclude the moral hazard presented by the profession.
  3. Classified as a substandard risk, subject to a flat extra premium to account for the constant level of occupational danger.Cevap
  4. D
    Classified as a standard risk, but the primary insurer utilizes risk avoidance by transferring the specific occupational exposure to a reinsurer.

Cevap

The policy will be classified as a substandard risk and subject to a flat extra premium due to the constant occupational hazard.
The correct answer accurately reflects how insurers handle dangerous occupations. Even with perfect health, engaging in a highly dangerous profession like underwater welding elevates the chance of death, requiring a substandard classification. Because the occupational risk is generally constant (as opposed to a degenerative health condition that worsens over time), underwriters typically utilize a flat extra premium—a fixed additional charge per $1,000 of coverage.

Adım Adım Çözüm

1
Evaluate the applicant's health factors.
The applicant has exceptional physical health and family history, which normally suggests standard or preferred rates.
Underwriting begins by establishing a baseline mortality expectation based on health data.
2
Evaluate the applicant's occupational hazards.
Commercial underwater welding is identified as a severe physical hazard with a high mortality rate.
Underwriters must account for non-medical exposures that increase the likelihood of a claim.
3
Determine the final classification and rating mechanism.
The extreme physical hazard outweighs the excellent health, categorizing the applicant as substandard. A flat extra premium is applied.
Hazardous occupations represent a constant hazard (unlike health conditions that progressively worsen), which is best offset by adding a flat dollar amount per thousand dollars of coverage rather than a percentage-based tabular rating.

Anahtar Kavram

Risk Classification and Premium Rating Methods
Bu soruyu puanla

Konular

Risk Classification

Bu konudan daha fazla soru