New York State Life Insurance Exam Questions Practice Question
The Group Life Underwriting risk selection process helps protect insurers from
Correct Answer: C
Rationale: The Group Life Underwriting risk selection process is designed to mitigate **adverse selection**, where individuals at higher risk are more likely to seek insurance, potentially leading to financial losses for insurers.
Option A, **risk selection**, is too broad and does not specifically address the imbalance created by high-risk individuals.
Option B, **medical underwriting**, refers to assessing individual health risks, which is not the primary focus of group policies.
Option D, **risk underwriting**, is vague and does not capture the specific challenge of adverse selection in group contexts. Thus, the emphasis on preventing adverse selection is crucial for maintaining the insurer's financial stability.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now