Important Points for IC 22 - Life Insurance Underwriting Exam
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If the risk associated with an individual is considered to be low and insurable at standard premium rates by insurance companies, then it is known as standard risk.
If the risk associated with an individual is considered to be higher than normal and cannot be insured at standard premium rates by insurance companies, it is known as sub-standard risk.
The diminishing lien method is used in cases where the risk associated with an individual is expected to diminish over a period of time.
In the specific exclusions method, a proposal is accepted by the insurance company with exclusion clause(s).
The underwriter can take a decision to postpone the proposal for a certain period if he feels that the risk associated with the individual will diminish after a certain period and the individual will become insurable.
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