Underwriting is the process that describes how a customer is reviewed, evaluated, approved, rejected or modified for an insurance policy. According to the WebCE, underwriting factors will determine the life insurance premiums. These factors include safe driving, health conditions and age.
The underwriting process begins with the application that includes the following:
-Name, address, phone, marital status, etc
-Dangerous hobbies or volunteer activities
-Annual income and the amount of coverage that you are requesting
-Specific questions on alcohol, tobacco and drug use
-Surgeries and hospitalizations
-Detailed family medical history
-Blood pressure checked
-Eyes, ears, and listening to heart
-Additional tests if warranted such as cognitive tests for dementia
The reviewer may request a statement from an attending physician, which is used to find out more about a specific medical condition. The insurance agent must also include a statement that provides applicant information. The application must be signed. Generally, the applicant provides an initial premium payment, which can be conditional depending on the underwriting process.
Investigative consumer reports provide information that may be used to find out more about the lifestyle of the applicant. However, the applicant must be informed of the procedure and provided with those contacted. The Medical Information Bureau is another source that underwriters use to determine eligibility.