Question

34 jacob is a newly licensed insurance agent during the covid - 19 pandemic. he notices that the insurance company he represents uses accelerated underwriting to process most applications. he is aware of simplified issue underwriting and would like to understand how it differs from accelerated underwriting. which of the following is a differentiating feature of accelerated underwriting jacob should be aware of?
options:
a. accelerated underwriting is a fully underwritten process that makes use of data, tools, and modeling techniques.
b. premiums for policies underwritten using accelerated underwriting tend to be higher than that of a simplified issue.
c. accelerated underwriting fails to offer preferred rates even for those applicants with good health.
d. accelerated underwriting makes use of a short - application and instantly available evidence to quickly accept or reject an application.

Explanation:

To solve this, we analyze each option:

• Option a: Accelerated underwriting being fully underwritten is incorrect as accelerated underwriting is a simplified process.
• Option b: Premiums for policies underwritten via accelerated underwriting being higher is wrong; accelerated underwriting often targets preferred risks with potentially lower premiums or at least not inherently higher.
• Option c: Accelerated underwriting failing to offer preferred rates is incorrect as it's designed for efficient processing of favorable cases.
• Option d: Accelerated underwriting uses a short application and instant evidence to quickly accept/reject, which matches the concept of simplified/accelerated underwriting (using data, tools, and modeling for quick decisions on applications, especially during pandemic for efficiency).

Answer:

d. Accelerated underwriting makes use of a short application and instantly available evidence to quickly accept or reject an application.