|
| Questions
to expect when applying for insurance | | When
you apply for an insurance policy, you will be asked
all sorts of
questions. For example, the agent will ask you demographic
questions
such as your age, gender, address, etc. You'll also
be asked questions
which will be used to determine what type of risk you
are. For example,
when a company is deciding whether or not to offer
you automobile
insurance, it will want to know about your driving
record, whether you
have any recent accidents or tickets, and what type
of car you drive.
This information will help them decide whether your
profile is
consistent with the type of risks they are trying to
attract. Some
insurers specialize in offering insurance to only very
safe drivers and
will only accept applications from people who fit the
profile of a safe
driver. Once the insurer has decided your profile is
consistent with the
types of risks it accepts, your information will be
used to determine
which rate to charge you. For example, the company
will decide whether
you should be offered insurance at the high-risk driver
rate or the
low-risk driver rate. Collectively, this entire process
is known as the
underwriting process. Once a company's underwriting
department has
decided to offer you insurance, it next determines
the "quality" of the
risk so the proper premium can be charged. That is,
high-risk people
should pay more than low-risk people.More
FAQ... |
|