Question 1

Some insurance policies state that the initial premium charged is an estimate and that the final premium will be based on an evaluation of the insured's financials, books, records, etc. The process of evaluating the insured's financial records is most commonly referred as a(n):

		premium audit
		internal validation
		external validation
		rate review

Part 2: One concern insurers have is that higher-than-average risk individuals may attempt to purchase insurance at a standard rate. This is referred to as:

		involuntary disclosure
		exclusive commitment
		superficial information
		adverse selection