Answer:
Please see the answer below
Step-by-step explanation:
As the rigorous of underwriting is depending on the types of insurance for the applicant who opt for it. Also depend on the sum assured and distribution process by the insurance company. In Term insurance if the sum insured is too high it is strictly underwritten than the whole life insurance because the risk taken by the insurer is high in term insurance. If underwriting is not strict, there are chances for anti selection in which policy holder use information for his own benefit choice. Risk to the insurer always rise with the sum insured. Application which contains high sum insured tend to be underwritten more rigorously.