- Insurance product applications submitted to insurers.
- Area of an insurance company that actually receives the applications.
- Conduct a good order check to ensure that  the application used is the correct form for the issuing application, the application is complete & accurate, and  the producer who submitted the application is properly licensed and appointed.
- Perform a suitability check, to determine whether a particular insurance product is an appropriate purchase for the applicant, based on the applicant’s financial needs.
- Establish a policy record and arrange for special services.
- For variable life insurance and for all annuity products, send a transaction confirmation.
- Issue the policy.
Underwriting Philosophy & Underwriting Guidelines
Fundamentals of Individual Life Insurance Underwriting
Risk Assessment Factors
- Person’s Build
- Personal Medical History
- Family Medical History
- Tobacco Use
- Alcohol and Substance Abuse
- Moral Hazard
- Avocations & Hobbies
- Aviation Activities
- International Residence
- Some insurance companies do not approve coverage for proposed insured’s who permanently reside abroad – because obtaining accurate underwriting information on these cases and investigating claims in other countries can be difficult.
- Driving History
- Drivers with risky driving habits or those who drive as their occupation are more likely to be involved in accidents.
- A business partner or employer and the proposed insured.
- A creditor and the proposed insured.
Fundamentals of Group Life Insurance Underwriting
Regulatory Requirements & Underwriting
Reviewing the Application for Insurance
Gathering Additional Information
Table of Underwriting Requirements
- Approve the coverage as applied for.
- Rate the application.
- If the proposed insured has certain medical, personal and/or financial risk factors but is still considered insurable, the underwriter rates the application. Rating is the process of increasing the premium rate or modifying the type or amount of coverage to approve a risk.
- Decline the application.