Question

Underwriters try to have a proper balance within each risk classification. Much of personal lines underwriting today involves all exposures units with similar loss-producing characteristics being placed in the same category and charged the same rate. This type of underwriting is known as:

a. Class underwriting
b. Merit underwriting
c. Field underwriting
d. Line underwriting

Answer 1

A. Class underwriting

Step-by-step explanation:

Underwriting can be defined as a process through which an individual or business institution takes on fimancial risk for a fee.

Class underwriter refers to the individual responsible for underwriting a given class of business within the syndicate structure.

Underwriting class refers to a way of grouping people into different risk groups so that people in a preferred rate class may pay a lower premium than people in a standard class for the same amount of coverage.

Class underwriting is a type of underwriting in which underwriters try to have a proper balance within each risk classification. Much of personal lines underwriting today involves all exposures units with similar loss-producing characteristics being placed in the same category and charged the same rate.

Answer 2

Answer: a. Class underwriting

Explanation: Class underwriting is a classing system that is used in grouping people into risk management groups. Class Underwriting is also a process employes by an individual, organisation or institution which helps the individual, organisation or institution in taking on financial risk for a fee