Preview Questions Underwriter | Role Specific Skill

Question 1: When reviewing a policyholder's claim history, what should an underwriter do to ensure compliance with the Health Insurance Portability and Accountability Act (HIPAA)?

Which action should you take?

Choose only one option

Ignore the HIPAA guidelines if the policyholder consents to disclosure

Protect the confidentiality of health-related information and only use it for necessary underwriting decisions

Use health information without client consent as long as it pertains to underwriting

Disclose all information to the underwriting team to ensure a complete risk evaluation

Question 2: What is the role of risk-based pricing in the underwriting process?

Which action should you take?

Choose only one option

It allows the underwriter to approve more loans without collateral

It minimizes the interest rate to attract more clients

It adjusts the loan terms based on the perceived risk level of the borrower

It applies a fixed interest rate to all borrowers, regardless of risk

Question 3: How can an underwriter manage a situation where a client is disappointed with the claim settlement amount?

Which action should you take?

Choose only one option

Suggest the client file a complaint with the regulatory authority

Offer an immediate increase in the settlement amount without further review

Provide a detailed explanation of the settlement process and any limitations, offering to revisit the claim if justified

Apologize without offering an explanation or solution

Question 4: What approach should an underwriter take when a client questions the premium amount in relation to their risk profile?

Which action should you take?

Choose only one option

Compare the client's risk profile with industry benchmarks

Explain that the premium is determined by the company's standardized rate

Present detailed calculations and risk analysis behind the premium

Suggest a lower coverage plan to reduce the premium cost

Question 5: How does a variable life insurance policy differ from a traditional whole life policy?

Which action should you take?

Choose only one option

It offers guaranteed returns, unlike whole life insurance

It only provides death benefits and no cash value accumulation

It allows the policyholder to invest in sub-accounts, which can affect the death benefit and cash value

It has a fixed premium amount throughout the policyholder's life

Question 6: How does an underwriter ensure compliance with regulatory standards when reviewing insurance policies?

Which action should you take?

Choose only one option

By ensuring all policies have a standard pricing model

By consulting with legal advisors to verify policy language and terms

By verifying policy details against current legal and regulatory frameworks

By ensuring all exclusions are clearly stated