Preview Questions Underwriter | Role Specific Skill

Question 1: What approach should an underwriter take when working with a client who frequently requests policy adjustments?

Which action should you take?

Choose only one option

Refer the client to a different department to handle adjustments

Accept all requests to maintain the relationship

Limit the changes to once per year

Explain the implications of frequent changes and offer a structured review process

Question 2: In policy review, how does an underwriter manage potential conflicts between internal policy guidelines and external regulations?

Which action should you take?

Choose only one option

By disregarding regulatory compliance for efficiency

By ensuring internal policies are updated regularly to comply with regulatory changes

By overriding internal policies with external regulations

By following the internal policy guidelines strictly

Question 3: When underwriting a commercial insurance policy, what ratio would be most important to assess operating efficiency?

Which action should you take?

Choose only one option

Net profit margin

Operating profit margin

Debt-to-equity ratio

Return on assets (ROA)

Question 4: How do underwriters assess regulatory risk when evaluating policies for business clients in the BFSI sector?

Which action should you take?

Choose only one option

By evaluating the business's product portfolio

By reviewing regulatory changes in the business's industry and jurisdiction

By considering the market volatility and interest rates

By analyzing the business's financial statements

Question 5: In the context of claims assessment, how does an underwriter assess claims for fire damage under a commercial policy?

Which action should you take?

Choose only one option

By verifying the presence of a fire detection system in the property

By reviewing the fire department's report and the cause of the fire

By evaluating the policyholder's loss history

By assessing the insured value of the property

Question 6: In underwriting, how is the risk associated with adverse selection typically mitigated?

Which action should you take?

Choose only one option

By diversifying the portfolio with more high-risk policies

By using detailed underwriting criteria and assessing applicants' risk profiles

By reducing premiums for high-risk individuals

By offering discounts to attract more clients