Underwriting Purpose
- To Prevent anti-selection or selection against the insurer
- To classify risks and ensure equity among risks
Selection of Risk
Refers to the process of evaluating each proposal for life insurance in terms of the degree of risk it represents and then deciding whether or not to grant insurance and on what terms
Anti- Selection
Tendency of people, who suspect or know that their chance of experiencing a loss is high, to seek out insurance eagerly and to gain in the process.
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