Life Underwriting and Applications Flashcards
Application
Primary tool used to evaluate an applicant for insurance
Application is considered part of the contract and must be…
Accurate
Application Issues
Any corrections must be initialed by the applicant
Portions left blank on application that aren’t caught by the insurer will…
Waive the insurer’s right to that information
Required Signatures
Applicant and producer
In rare cases, application must also be signed by…
Insured person (if not owner); Parent/Guardian (if under 18)
Agent/Producer Report
Information from the producer about the applicant
Report must include…
Relationship to the applicant; knowledge of insurance being replaced; Understanding of applicant’s health
Preferred Risk
Higher than average life expectancy and low cost
Standard Risk
Average life expectancy and average cost
Substandard Risk
Lower than average life expectancy and high cost
Declined Risk
Uninsurable
Life insurers care about…
Hospitalizations, surgeries, Rx, specialist visits, family med history, tobacco use, conditions that impact mortality
Mortality
Life expectancy
Morbidity
Likelihood of disability
Attending Physician’s Statement
Info requested from applicant’s physician to clarify what’s on the application
Attending physician’s statement requires applicant’s consent and…
Can’t be shared by insurer for other purposes
Simplified issue policies won’t require…
Medical exam
Most policies will at least require basic tests for…
Drugs, nicotine and serious diseases
Extensive exams might be required for…
Large policies and/or inconclusive info on the application
HIV tests are common but must me done with…
Consent and remain confidential
HIV tests are paid by…
Insurer
HIV tests do not ask questions about…
Sexual history
MIB records can only indicate “abnormal” tests and can’t…
Explicitly disclose HIV status
