Preview Questions Underwriter | Role Specific Skill

Question 1: When assessing a marine insurance policy, what specific risks should an underwriter consider for an international shipping company?

Which action should you take?

Choose only one option

Risks related to global trade, piracy, geographical challenges, and international regulations

The reputation and financial health of the shipping company

The cargo type and insurance value alone

Only the age and condition of the ship

Question 2: In the context of claims assessment, how does an underwriter assess claims for fire damage under a commercial policy?

Which action should you take?

Choose only one option

By verifying the presence of a fire detection system in the property

By reviewing the fire department's report and the cause of the fire

By evaluating the policyholder's loss history

By assessing the insured value of the property

Question 3: What is the significance of reviewing the claimant's historical claims during a new claims assessment?

Which action should you take?

Choose only one option

It helps in identifying patterns that might indicate fraud or increased risk

It simplifies the underwriting process

It provides insights into how much to charge for future premiums

It ensures faster claims approval

Question 4: What does a high debt-to-income (DTI) ratio typically suggest in risk assessment for personal loans?

Which action should you take?

Choose only one option

The borrower may be overextended and has a higher risk of default

The borrower can easily afford higher loan amounts

The borrower is highly creditworthy and poses low risk

The loan terms should be more lenient due to personal financial stability

Question 5: In reviewing an applicant's policy, how should an underwriter handle ambiguous clauses?

Which action should you take?

Choose only one option

Ignore ambiguous clauses and issue the policy as is

Seek clarification from legal or compliance teams to ensure accurate interpretation

Apply a standard interpretation based on prior policy decisions

Approve the policy based on standard industry practices

Question 6: How does Solvency II regulation impact the underwriting process for an insurance company?

Which action should you take?

Choose only one option

It simplifies underwriting by reducing regulatory requirements

It eliminates the need for underwriting reviews

It requires insurance companies to maintain a sufficient level of capital and apply a risk-based approach to underwriting

It limits the amount of risk an insurer can underwrite