When a fraternal insurer began operations, it asked each member, regardless of age, to pay $20 per month to the fraternal's group life insurance plan. In exchange, each member received the same amount of life insurance
Soon younger members of the group began to drop out when they realized their premiums were subsidizing a group with a higher chance of loss. Which important underwriting principle was violated in this case?
A) An underwriting profit should be attained.
B) Moral hazard should be avoided.
C) Insureds should be selected according to underwriting standards.
D) There should be equity among policyholders.
Answer: D
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Executive summary and abstract are interchangeable terms for the summary in the front matter of a proposal.
a. true b. false
Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?
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