Which One of the Following Statements, is In-Correct, with Regard to Numerical Rating Method of Underwriting?
A)Under this Method, Underwriters assign the Positive Rating-Points for All Negative or Adverse Factors.
B)Under this Method, Underwriters assign the Positive Points for Any Positive or Favourable Factors.
C)Under this Method, the Total Number of Points, so assigned, will decide How Much Extra- Mortality-Rating (E.M.R.), it has been given.
D)Under this Method, if the Extra-Mortality- Rating (E.M.R.) is Very High, Insurance may even be declined.

Question

Quizplus · Accepted Answer

In the numerical rating method of underwriting, underwriters assign positive rating points for negative or adverse factors, not for positive or favorable factors. Positive or favorable factors would not increase the risk and therefore would not increase the points in a system designed to assess risk.

Which One of the Following Statements, Is In-Correct, with Regard