Question 24

In which step of the underwriting process does an underwriter analyze hazards and consider whether the hazards make the overall level of risk desirable or undesirable?

Select one:

A. Monitor the underwriting decision

B. Make the underwriting decision

C. Gather the necessary information

D. Implement the underwriting decision

Question 25

One of the additional tasks within the underwriting division that an insurer that grants binding authority to others must perform is to

Select one:

A. Implement the underwriting decision to accept, reject, or accept with modifications.

B. Make the underwriting decision based on hazards.

C. Monitor the underwriting decision at renewal.

D. Select the classes of business to be included in the binding authority.

Question 26

Which one of the following is an example of an insurance product that might be unavailable in the admitted market but could be profitably written in the surplus lines market?

Select one:

A. Business income coverage for a retail store in a shopping mall

B. Transit coverage for a small business shipping within the continental U.S.

C. Property coverage for a single apartment complex in a moderate-sized Midwestern town

D. General liability coverage for a chain of grocery stores with a high frequency of slip-and-fall claims