New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    What is the purpose of classifying risks in

    underwriting?
    A To make it easier to sell insurance policies. Correct Answer Incorrect Answer
    B To comply with government regulations Correct Answer Incorrect Answer
    C To accurately price risks and determine appropriate coverage Correct Answer Incorrect Answer
    D To track the number of claims filed by each insured Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The correct answer is C. To accurately price risks and determine appropriate coverage. Classifying risks allows insurers to group similar risks together, enabling them to more accurately assess and price them.

    Practice Next