Which one of the following is primarily a staff underwriting

Which one of the following is primarily a staff underwriting activity?

Select one:

a. Charge adequate premiums for accounts with higher than average chance of loss

b. Rationing the insurer\'s available capacity to obtain an optimum spread of loss exposures

c. Selecting better-than-average accounts for which the premium charged will be adequate.

d. Formulate underwriting policy

Solution

Formulate underwriting policy

Rest of these are goals of effective account selection by line underwriters

1.Avoid adverse selection
2. Charge adequate premium for accounts with a higher-than-average chance of loss
3. Selecting better-than-average accounts for which the premium charged will be more than
adequate
4. Rationing an insurers available capacity to obtain an optimum spread of loss exposures by.

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