Important Points for IC 22 - Life Insurance Underwriting Exam
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If the risk associated with an individual is considered to be substantially high by an underwriter, and no amount of extra premium or specified exclusions can help the company in diminishing that risk for the company, then the proposal is declined by the insurance company.
Standard premium is charged to individuals if the predictive mortality does not deviate much when compared to that indicated in the mortality table provided by the actuaries.
Morbidity rate is the frequency with which a disease appears among a group of people on the basis of their age, gender, occupation etc.
Decreasing extra risk is high at the time of initial underwriting but decreases over a period.
Full bonus is paid for 'with profit' policies in case of diminishing lien, if the insured dies within the lien period.
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