Preview Questions Underwriter | Role Specific Skill

Question 1: 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 2: When an underwriter is communicating coverage details to a client, what is the most effective strategy for ensuring the client understands?

Which action should you take?

Choose only one option

Using simple visual aids (e.g., charts or graphs) to explain terms

Using industry terminology to demonstrate expertise

Focusing on comparing plans with other providers

Breaking the terms into clear bullet points with examples

Question 3: In underwriting a professional indemnity insurance policy, what is the primary risk factor an underwriter should consider?

Which action should you take?

Choose only one option

The location of the business and its market share

The client's reputation and future business projections

The employee count and financial stability of the business

The policyholder's profession, claims history, and professional risks

Question 4: What factor is most important when evaluating premium pricing for a life insurance policy?

Which action should you take?

Choose only one option

The policyholder's medical history and age

The geographical location of the policyholder

The number of dependents in the policyholder's family

The annual income of the policyholder

Question 5: What is the most effective method for evaluating the credit risk of a business applying for trade credit?

Which action should you take?

Choose only one option

Focusing on industry-wide risks that affect the business

Relying on the business's current assets and liabilities

Using credit scoring models and evaluating past performance

Using market trends and future forecasts

Question 6: In evaluating a property insurance claim, which financial document is most critical for assessing the insured's ability to cover a large loss?

Which action should you take?

Choose only one option

Insurance premium history

Income statement

Balance sheet

Statement of cash flows