Preview Questions Underwriter | Role Specific Skill

Question 1: How should an underwriter approach a situation where a client is dissatisfied with a rate increase on their policy?

Which action should you take?

Choose only one option

Explain the reasons for the increase in detail and explore options for mitigation

Apologize but refuse to change the rate

Assure the client that the rate increase will be reversed immediately

Offer a completely different product at a lower price

Question 2: How does an Underwriter assess the environmental risks associated with underwriting a commercial property insurance policy?

Which action should you take?

Choose only one option

By only assessing the age and condition of the building

By reviewing the property's location relative to known environmental hazards

By reviewing the property's financial performance

By applying standardized risk models across all policies

Question 3: When determining the pricing of a policy, what should an underwriter consider when evaluating underwriting risk?

Which action should you take?

Choose only one option

The political stability of the applicant's country

The total cost of claims and historical loss ratios

The general economic climate and industry conditions

The overall industry growth rate and profitability

Question 4: In financial analysis for underwriting, how does an underwriter assess a company's ability to manage operational costs?

Which action should you take?

Choose only one option

By considering the company's market share and competitive position

By evaluating the company's operating cash flow and EBITDA

By analyzing the net profit margin relative to total revenue

By calculating the gross margin ratio

Question 5: How does an underwriter ensure compliance with local regulations when reviewing insurance policies in international markets?

Which action should you take?

Choose only one option

By relying on a third-party risk assessment without internal review

By ignoring local regulations if the client has a large market share

By offering the same terms as the domestic policy

By reviewing policy provisions for compliance with local legal requirements and industry standards

Question 6: In underwriting an auto insurance policy, how should the underwriter approach the review of the policyholder's driving record?

Which action should you take?

Choose only one option

By focusing on the make and model of the car

By reviewing the length of time the policyholder has been driving

By evaluating past claims and traffic violations as risk factors

By checking the geographic location where the policyholder resides