Life Insurance - Underwriting Risks

Question 1

Which policy types are subject to a medical underwriting process via an application form?

Answer 1

1. Individual policies
2. Small group schemes

Question 2

Which 5 types of information will an application form include?

Answer 2

1. Personal details (inc age)
2. Current state of health
3. Medical history
4. Occupation & hazardous pursuits
5. Lifestyle

Question 3

Which Act do the Non-Disclosure rules come under?

Answer 3

The Consumer Insurance (Disclosure & Representations) Act 2012 - CIDRA

Question 4

Under the CIDRA Act, what is the onus on the insurer?

Answer 4

If they want to know something, they must ask

Question 5

Under the CIDRA Act, what is the onus on the consumer?

Answer 5

They must respond to any questions asked truthfully

Question 6

Under the Non-Disclosure rules, in which circumstance will the claim be paid in full?

Answer 6

If the consumer has failed to declare a material fact but has acted reasonably

Question 7

Under the Non-Disclosure rules, in which circumstance will the claim be paid in a proportionate remedy?

Answer 7

If the consumer has failed to declare a material fact by failing to take reasonable care

Question 8

Under the Non-Disclosure rules, in which circumstance will the policy be voided from inception?

Answer 8

If the consumer has failed to declare a material fact by acting deliberately or recklessly

Question 9

What is a moratorium?

Answer 9

This excludes any condition which the applicant has received treatment for in the last 5 years

Question 10

Under a moratorium, what is the initial exclusion period?

Answer 10

5 years

Question 11

Under a rolling moratorium, how long will the excluded conditions be excluded for if no further treatment is required?

Answer 11

2 years

Question 12

What is a rolling moratorium?

Answer 12

Where conditions excluded under moratorium are excluded for a further 2 years after treatment or a check-up

Question 13

Is a moratorium usually applied under a short-term or long-term policy?

Answer 13

A short-term policy

Question 14

Explain Continuing Personal Medical Exclusions (CPME)

Answer 14

Where the underwriter adopts the underwriting decision applied by a previous insurer

Question 15

When are Continuing Personal Medical Exclusions (CPME) offered?

Answer 15

When an insurer wants to encourage customers to switch to them from another insurer

Question 16

Are group schemes subject to medical underwriting?

Answer 16

No, unless an individual wants to add additional cover on top of the ‘free’ cover

Question 17

Is Group CIC subject to a moratorium?

Answer 17

Yes

Question 18

What is a Paramedical?

Answer 18

This includes a short medical questionnaire, plus basic tests such as height, weigh & blood pressure measurements carried out by a nurse

Question 19

What is Big T Tele-underwriting?

Answer 19

Where few questions are asked on the application, and instead asked over the phone

Question 20

What is Little T Tele-underwriting?

Answer 20

Where most questions are asked on the application form, and supplementary questions are asked over the phone

Question 21

What are the 2 types of tele-underwriting?

Answer 21

1. Big t underwriting
2. Little t underwriting

Question 22

Name 3 benefits of tele-underwriting

Answer 22

1. Shorter application forms
2. Faster underwriting
3. Less non-disclosure

Question 23

In more complex cases, who might an underwriting refer these to? Name 2

Answer 23

1. Chief Medical Officer
2. Reinsurer

Question 24

On what 2 terms may an application may be accepted on?

Answer 24

1. Standard terms
2. Special terms

Question 25

What 3 things may an underwriter apply to a WOL or term assurance policy?

Answer 25

1. A premium loading
2. An extra mortality rating
3. An age rating