Important Points for IC 22 - Life Insurance Underwriting Exam
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Non-medical underwriting is considered to be riskier and products are priced higher than medically underwritten products, as insurance cover is provided to the insured without medical checkups.
Non-medical grids are generally a function of the age and the sum assured. For non-medical underwriting, each company establishes a non-medical grid for each of its insurance products based on which risk can be accepted by underwriters.
Once the life insurance underwriter approves the proposal for life insurance, the insurance company issues a life insurance policy document, also called the policy bond/policy contract.
Underwriting philosophy of an insurance company is used to define the underwriting strategy and guidelines of the insurance company, which have to be formulated in sync with the reinsurers.
The underwriting guidelines impact the product-pricing and the extent of sub-standard risks that a company decides to undertake relating to each of its products.
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