Underwriting is the process of reviewing, evaluating, approving, rejecting, or modifying a customer for an insurance policy. Underwriting factors, according to the WebCE, will determine life insurance premiums. These variables include safe driving, health, and age.
The application, which includes the following information, kicks off the underwriting process.
Personal Information:
- Name, address, phone number, marital status, and so on
- Occupation in business -Dangerous hobbies or volunteer activities
- Annual income and amount of coverage requested -Medical information -Medications
- Specific questions about the use of alcohol, tobacco, and drugs
- Medical problems
- Operations and hospitalizations
Physical Examination:
- Extensive family medical history
- Blood pressure checked -Eyes, ears, and heart monitoring
- Blood sample -Urine sample
- If necessary, additional tests such as cognitive tests for dementia.
A statement from an attending physician may be requested by the reviewer in order to learn more about a specific medical condition. A statement providing applicant information must also be included by the insurance agent. Signing the application is required. In most cases, the applicant makes an initial premium payment, which may be conditional depending on the underwriting process.
Investigative consumer reports provide information that can be used to learn more about the applicant’s lifestyle. However, the applicant must be informed of the procedure and given the names of those who have been contacted. Underwriters also consult the Medical Information Bureau to determine eligibility.