Question 12013 of 303 · California Life-Only Agent Exam

Adverse selection in life underwriting is best controlled by

Exactly one answer is correct.

Alowering premiums for every applicant who simply asks for a lower rate
Brequiring proof of insurability and classifying risks
Cwaiving all medical questions on the application for everyone
Dissuing policies without requiring any application at all

Show solution

Correct answer to question 12013

B: requiring proof of insurability and classifying risks

Explanation

Underwriting screens out or rates higher risks, preserving fairness.