Types of Underwriting
This type of underwriter appraises an applicant's credit history, financial records, and the value of any collateral offered for approval of borrowing money
a) loan underwriter
b) insurance underwriter
c) equity underwriter
d) mortgage underwriter
What is a loan underwriter?
Why is there pressure on underwriters to price risk more accurately and faster than ever?
A) Pressure on underwriters are due to increased competition
B) Pressure on Underwriters are due to regulatory changes
C) Pressure on underwriters are due to technological advancements
D) Pressure on underwriters are due to Covid-19
Pressure on underwriters are due to Covid-19
We are in a _____ market.
What is Hard market?
Locations, occupancy, health, hobbies, and gender are a part of what info-gathering strategy?
A. Application
B. Inspection Report
C. Agents Report
D. Physical Inspection
What is A. Application
This underwriter assesses risk based on their age, health, lifestyle, occupation, and family medical history to determine prices of coverage.
a) Insurance underwriter
b) debt securities underwriter
c) loan underwriter
d) underwriter
What is an insurance underwriter
What trend is analytics playing in underwriting?
A) Data analytics is getting more increased in importance in underwriting
B) Predictive modeling has increased in importance in underwriting
C) Data Analytics relies Soley on traditional methods
D) Data analytics, predictive modeling, and data mining are all helpful to underwriters
Data analytics, predictive modeling, and data mining are all helpful to underwriters
People with higher chance of loss wanting insurance at normal rate, results in higher loss levels.
What is Adverse selection?
A report in which the agent/broker provides the eyes and ears to the underwriter?
A. Application
B. Inspection Report
C. Agents Report
D. Physical Inspection
What is C. Agent report?
This underwriter assesses risks for individual investments, often times an IPO with the belief the company's IPO will raise capital.
a) loan underwriter
b) debt underwriter
c) securities underwriter
d) field underwriter
What is a securities underwriter?
What role is A.I playing in underwriting?
A) Underwriters are not using A.I in pricing
B) Underwriters using A.I have seen a decrease in pricing accuracy
C) Underwriters using A.I have experienced longer processing times
D) Underwriters are using A.I to improve pricing and lower the processing time
What is A.I in underwriting.
Provide ______ with Policyholders.
What is Equity?
An Inspection that may be done in suspicion of a moral hazard or an investigation regarding a client's pre-existing health issues and their honesty on an application is an example of what?
A. Application
B. Inspection Report
C. Agents Report
D. Physical Inspection
What is B. Inspection Report?
This underwriter purchases types of bonds and preferred stock from an issuing body and may resell to a marketplace or to dealers.
a) loan underwriter
b) debt underwriter
c) securities underwriter
d) field underwriter
What is a Debt Security Underwriter
How is digital technologies replacing current practices in underwriting?
A) Digital technologies have increased the complexity of the underwriting process
B) Machine learning has replaced age and amount charts
C) Digital technologies have no play in the underwriting process
D) Digital technologies have only increased the need for more manual processes in underwriting
Machine learning has replaced age and amount charts.
In _______ adverse selection, you are trying to lower moral hazard.
What is reduce adverse selection?
As an underwriter list 2 things that you should be knowledgeable about and factor in when making decisions. *Besides Your Client/Property*
Industry Knowledge/Market Trends
Laws/Regulations
Insurance Products and Offerings
Underwriting Guidelines/Procedures