Chapter 6

Question 1

Continued personal medical exclusions

Answer 1

Insured supplies the new insurer with a copy of the most recent insurance certificate and the new insurer copies across any personal medical exclusions and does not add any new ones

Question 2

Loyalty scheme

Answer 2

Customer will have to continue to earn bonuses or premium discounts each year

Question 3

Morbidity risk

Answer 3

Risk that the insured we need medical treatments involving unspecified costs relating to the probability that certain medical conditions will occur and their frequency

Question 4

Mortality risk

Answer 4

Risk of dying in the next time period

Question 5

Rating factors

Answer 5

Include age, martial status, smoker or non-smoker, hospital banding and previous claims experience

Question 6

Rolling moratorium

Answer 6

On enrolment, any medical conditions that have presented symptoms or required advice, treatment or medication in a specified period prior to the enrolment will be excluded from the policy

Question 7

Specific extra risks

Answer 7

Insurers will often ask for more medical and other information on applications

Question 8

Tele-underwriting

Answer 8

Speeds up applications as it avoids the insure having to obtain separate medical information