Question

Which of these factors do NOT play a role in the underwriting of a life insurance policy? a) Avocations. b) Credit status. c) Marital status. d) Occupation.

Answer 1

Marital status does not typically play a role in the underwriting of a life insurance policy.

Step-by-step explanation:

The correct answer is c) Marital status. Marital status does not typically play a role in the underwriting of a life insurance policy. The factors that usually influence the underwriting process include avocations (hobbies and activities), credit status, and occupation. Avocations are important because some high-risk activities, such as skydiving or deep-sea diving, can increase the premium of the life insurance policy. Credit status can impact the underwriting process as it reflects the individual's financial responsibility. Lastly, occupation is considered because certain occupations, like firefighter or professional athlete, may be associated with higher risks.

Answer 2

Marital status is generally not a primary factor in life insurance underwriting, while avocations, occupation, and credit status are considered to assess the risk profile of the applicant.

Step-by-step explanation:

When underwriting a life insurance policy, insurers evaluate numerous factors to determine the risk profile of an applicant. Among these factors, avocations (hobbies and activities), occupation, and credit status are considered. Avocations and occupation can affect the level of risk due to the potential dangers associated with certain activities or jobs. Credit status might indirectly suggest the financial responsibility of the applicant, which can correlate with risky behaviors. However, marital status is generally not a primary factor in determining risk for life insurance underwriting.

Therefore, the answer to the question of which factor does NOT play a role in the underwriting of a life insurance policy is c) Marital status.