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    Question

    A section of the risk-based capital formula calculating

    requirements for reserves and premiums is termed as?
    A Universal Life Insurance Correct Answer Incorrect Answer
    B Unauthorized Reinsurance Correct Answer Incorrect Answer
    C Underwriter Correct Answer Incorrect Answer
    D Underwriting Risk Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Underwriting risk is the risk of loss borne by an underwriter. In insurance, underwriting risk may arise from an inaccurate assessment of the risks associated with writing an insurance policy or from uncontrollable factors.

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