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dusya [7]
2 years ago
9

Which measure could an underwriter use to reduce the risk when underwriting a Disability Income Policy?A. Increase the benefit p

eriod and increase the amount of the benefitB. Shorten the elimination period and increase the amount of the benefitC. Increase the benefit period and shorten the elimination periodD. Shorten the benefit period and increase the elimination period
Social Studies
1 answer:
WITCHER [35]2 years ago
4 0

Answer:

D. Shorten the benefit period and increase the elimination period                  

Explanation:

          Disability Income Policy is often called as Disability Income or DI. It is form of policy or insurance which insures the earned income of the beneficiary against any risk of disability that might create a barrier for an employee to complete the functions of their duty.

          While underwriting a DI insurance, the underwriter must assess the risk the insurer post to become disable and the insurance company has to pay the benefits. Hence the underwriter must take care to avoid taking risk  to increase the elimination period and reduce the benefit period of the insurance.

Hence the correct option is (D).

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