Life - Insurance Underwriting, Issuance, Delivery (1.1)

Front 1

Purpose of Underwriting

Back 1

selection of risk and the process of reviewing risks to determine if the applicant os insurable

Front 2

Insurable interest

Back 2

exists with the life insurance when the death of an ED causes a financial hardship to another person

Front 3

field underwriters

Back 3

refers to the producer completing an application on the applicant -- producer can visually observe the applicant and make a judgement call

Front 4

application

Back 4

first source of info to be reviewed

Front 5

Underwriting factors includeL

Back 5

applicants sex
marital status
age
health
occupation
medical history
moral character
finances
income
zip code

Front 6

changes in application

Back 6

and changes should be intialed by the applicant -- any changes must be approved by the applicant

Front 7

Parts of the application

Back 7

general - basic demographics including:
policy type
beneficiary name
insurance owned
any other pending applications
Part2 = health
Part 3= Agents report (producer answers questions about the applicant based on observation)

Front 8

Attending Physicians Statement

Back 8

the applicants medical records from the applicants physician

Front 9

Medical Information Bureau (MIB)

Back 9

nonprofit central info repository suppported by more than 600 members. It contains medical info for life and health insurers

Front 10

MIB Report contains:

Back 10

medical info
advocation info
the number of times info has been requested on the applicant in the last 2 years

Front 11

Mortality tables have 2 primary purposes

Back 11

1. to show the average number of years remaining for groups of people at various ages
2. to show the average number of deaths for groups of poeple at various ages

Front 12

Loading

Back 12

charges assessed to each policy sold relating to the insurers operating expenses

Front 13

gross annual premium v. net single premium

Back 13

gross annual premium- amount that must be paid each year for the insurance coverage
net single premium- amount that, if paid at the start of the contract along with compound interest, would be sufficient to pay the policy amount when due

Front 14

Back dating

Back 14

when the applicant is allowed to date the application to a past date in order purchase the insurance at the applicants last age -- helps to acheive lower premiums

Front 15

conditional receipt

Back 15

producer cannot guarantee that the coverage will be issued
*** given to the ED when the initial premium is paid at the time of application

Front 16

inspection reciept

Back 16

ED does not pay any premium until the policy has been inssued and the ED has time to inspect the policy before accepting it

Front 17

binding receipt

Back 17

ER is bound to provide coverage during the underwriting period starting from the date of application -- initial premium must be paid

Front 18

policy effective date

Back 18

est. by the date of the premium reciept

Front 19

policies may be issued in the following ways:

Back 19

1. as applied for
2. as a modified or amended policy
3. with a waiver excluding death by certain causes

Front 20

constructive delivery of the policy

Back 20

act of delivering the policy to the policyownder