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Question 1:
(a) What is meant by underwriting?
(b) How can underwriting be used to manage the risks of a life insurance company?
(c) Give and describe the three types of underwriting in the context of a life insurance company.
(d) List the sources of medical evidence that may be used to underwrite an application for life insurance.
(e) Give reasons why some of these sources may not be used for all applications in practice.
Question 2:
A life insurance company has for many years sold policies through its own sales force and through press advertising.
(a) Describe the main features of the company's existing sales channels.
The company is looking for alternative distribution channels in order to increase sales growth. It is considering both:
(b) Discuss how the proposed channels might achieve the company's aim.
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Information Signaling Effect Theory Advanced via Stephen Ross in year 1977, He argued such in an inefficient market; management can utilize dividend policy to signal significa
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