General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
In disability income underwriting, a construction worker is rated differently from an office clerk primarily because the physical demands of the occupation affect the:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Occupation is one of the most important rating factors in disability income insurance because it directly changes the probability of disability. A construction worker faces a higher chance of occupational injury and disability than an office clerk, so the risk of loss differs even when age and health are identical. Underwriters price that higher risk through occupation class ratings.
Why the other options are wrong
- B) The peril, such as accidental injury or sickness, is the same for all insureds; occupation changes probability, not the peril.
- C) Insurable interest exists for both applicants under CIC Section 10110 and is unrelated to occupation class.
- D) The incontestability period is a standard two-year contract provision, not affected by occupation.
Memory hook
Occupation is a probability dial: the same peril, a very different chance of the claim.