Page 22 - Life Insurance underwriting Ebook IC 22

revival norms of a company.

3. Calculation of financial-sum-at-risk (FSAR)

Financial-sum-at-risk (FSAR)

Another important aspect that is taken into account at the underwriting stage is
calculation of the FSAR-"Financial -Sum -at -risk". This differs from the

definition of MSAR-Medical -Sum-At -Risk" mentioned to above.

e) Step 5: Medical examination

The medical examination involves:
 Measuring the height, weight and blood pressure and examining the organs and

systems of the human body.
 May also entail taking of body fluids such as blood and urine sample along with

cardio logical tests like ECG. TMT. X-Rays etc A sample format of an FMR-Full
Medical Report) is provided in the ' Annexure" section in the book.

In some cases, the clients are requested to complete certain relevant questionnaires

based on their personal and medical profile whose life is to be insured such as:
 Diabetes questionnaire

 Tumor questionnaire
 Deformity questionnaire

 Armed-forces questionnaire etc.

f) Underwriting the life insurance proposal

According the regulatory norms established by the IRDA. proposals have to be
processed by the insurance companies with speed and efficiency, and

all dating to the proposals have to be communicated in writing within a
reasonable period not exceeding 15 days from receipt of the proposals by the

insurer.

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