Important Points for IC 22 - Life Insurance Underwriting Exam
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If an insurance company selects more of sub-standard risks as compared to standard risks, then this will result in adverse selection.
In the case of decreasing extra risk, extra premium will be charged by an insurance company on a temporary basis.
Standard risks can be insured at standard premium rates.
Morbidity risk arises when the probability that an individual becomes ill or faces adverse medical condition is high.
Riders are optional additional coverage and benefits that are offered along with basic life insurance policies to enhance the benefits that will be payable to the policyholders.
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