CAS Practice Exam 2025 – Complete Study Guide

Changing insurance rates or policy limits can greatly enhance the acceptability of a submission by ensuring that the terms align more closely with the risk exposure and underwriting guidelines. Adjusting the rates reflects the actual risk being underwritten and can make the product more appealing to both the insurer and the policyholder. Additionally, revising policy limits may help accommodate the insured's needs while still allowing the insurer to manage potential liabilities effectively.

When rates are adjusted appropriately, they can adequately cover the anticipated claims and contribute to the overall profitability of the policy. Similarly, modifying policy limits can aid in providing coverage that is both competitive in the market and sustainable for the insurance provider.

In contrast, increasing policy exclusions may limit coverage excessively, making the submission less attractive. Similarly, shortening the policy term could create issues regarding premium adjustments and customer satisfaction, while eliminating risk control measures would increase the potential for loss, likely making the submission less favorable to underwriters.