M80 Underwriting Practice Exam Guide 2024/2025

<p>Compare the premium with similar risks in the market. (C)</p> Signup and view all the answers

<p>The median is 22. (C)</p> Signup and view all the answers

<p>The arithmetic mean equals the median average. (A)</p> Signup and view all the answers

<p>Deliberately concealed previous claims. (C)</p> Signup and view all the answers

<p>The risk may require higher premiums to account for potential losses. (A)</p> Signup and view all the answers

<p>It also allows cancellation by the insurer. (C)</p> Signup and view all the answers

<p>It will effectively hold the underwriting pen of the insurer. (A)</p> Signup and view all the answers

<p>To maximise profitability and reduce reinsurance costs. (A)</p> Signup and view all the answers

<p>Via an intermediary. (D)</p> Signup and view all the answers

<p>To identify altered client information and invalid policy documents. (D)</p> Signup and view all the answers

<p>Cultural, financial and political. (A)</p> Signup and view all the answers

<p>Claims where criminal gangs have deliberately caused vehicles to crash. (D)</p> Signup and view all the answers

<p>Cultural sensitivities. (D)</p> Signup and view all the answers

<p>There are two distinct groups in the data. (B)</p> Signup and view all the answers

<p>There is increasing uncertainty in claims experience. (A)</p> Signup and view all the answers

<p>They assume historical trends will continue. (C)</p> Signup and view all the answers

<p>It captures variability in claims that smaller datasets cannot. (C)</p> Signup and view all the answers

<p>That low premium means low profitability. (D)</p> Signup and view all the answers

<p>The median is 15. (A)</p> Signup and view all the answers

<p>Profitability is likely decreasing. (D)</p> Signup and view all the answers

<p>It reflects the most frequently occurring value. (D)</p> Signup and view all the answers

A situation where an insured's behavior changes after a policy is taken out due to insurance coverage, leading to an increased risk of claim.

Average number of claims predicted for a given period or scenario by multiplying each possible value by its probability, then summing those values.

The middle value in a sorted dataset.

The value that appears most frequently in a dataset.

The sum of all values divided by the number of values in a dataset.

Behaviors that increase risk of claim before insurance is purchased.

Identifying and evaluating the claim events (risks) to be considered in a policy and how these might change over time.

Claims which are deliberately false or misleading.

A policy clause allowing the policyholder to cancel the policy and receive a premium rebate under specific conditions.

Transitioning from a broker to an MGA involves taking on increased responsibilities, including underwriting and financial management, and reporting to regulatory bodies.

Underwriters delegate authority to specialist coverholders to access more customers, reduce distribution costs, and potentially enhance profitability or reduce reinsurance costs, without sacrificing regulatory compliance.

Large manufacturers typically purchase property and liability insurance directly from an insurer, rather than using intermediaries.

The IFED investigates and stops insurance fraud, identifying bogus claimants and tracing high-value claim payments

When expanding internationally, insurers must consider cultural diversity, financial markets and political risks.

Insurers need to identify individuals and groups who facilitate or aid in fraudulent claims, like deliberately causing accidents to extract insurance funds.

Underwriters can delegate specific tasks to coverholders, which enables them to access broader markets and enhance efficiency potentially lowering costs and increasing profitability, but without sacrificing FCA compliance

The value that appears most frequently in a dataset.

A bell-shaped curve representing the distribution of insurance premiums; most policyholders pay premiums near the average.

Greater variability in claim amounts over time, indicating increased volatility.

Predicting future claims based on the historical frequency of similar events.

Predicting future claims outcomes using simulated scenarios.

Insurance analysis based on a large heterogeneous dataset of claims.

The most frequent value (20) in the list (5, 10, 10, 20, 30).

Claims data that includes a wide variety of situations or factors; not limited to a single type.