Question

What is the purpose of classifying risks in

Q: Answer-What is the purpose of classifying risks in underwriting?

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.

underwriting?

A To make it easier to sell insurance policies.

B To comply with government regulations

C To accurately price risks and determine appropriate coverage

D To track the number of claims filed by each insured

E None of the above

Practice Next

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What is the purpose of classifying risks in

Solution