Question 1018 of 303 · California Life-Only Agent Exam
The main purpose of insurance underwriting is to
Exactly one answer is correct.
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Correct answer to question 1018
- D: select and classify risks so premiums are fair and the pool stays profitable
Explanation
Underwriting evaluates applicants, classifies them, and prices coverage appropriately. Its goal is not to reject everyone but to balance the pool and prevent adverse selection.
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- 1019Adverse selection occurs when
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