Page 14 - Life Insurance underwriting Ebook IC 22

1000 sum-assured for a definite period (e.g. ranging from 2 to 5

years).
 This method whilst it helps in the risk assessment of individual

impairments the overall risk in case multiple impairments in the
same individual may not be equal to ratings for the sum of risk of
individual impairments this is a limitation as it does not a c m
count for the effect of presence of co-morbidity factors.

2. Understand the underwriting decisions with respect to extra mortality
rates.

The underwriter needs to review several documents necessary for risk
selection, such as:

 duly filled proposal application from
 age-proof documents
 medical reports used as pre-insurance screening
 personal health records of the client (if any)

 Financial documents etc. (income proof and other business income
statements etc.)
 Moral hazard reports from competent authorities of the insurance

company.

a) Accept the risk with extra premium

Where a risk is analysed and found to be greater than standard one, the
underwriter may opt to charge an extra premium on grounds of medical,

occupational, a vocational or for residence or for a combination of reasons.

b) Accept the risk with exclusions

Though, the insurers would want to charge extra premiums for the extra risks.
There are some risks which pose a very high risk that even a substantial extra
premium when charged will not be sufficient to take care of the extra risk.

c) Postponement or deferment of risk

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