IC-22 Life Insurance Underwriting – Exam Study Notes

A vocation refers to an activity that is taken on by an individual as a hobby, in addition to their work. Individuals who participate in ?dangerous sports and avocation? are considered to be ?high risk? by insurance companies.
Residential risks refer to risks which an individual is exposed to during his stay in a certain country.
An underwriter needs to remain up-to-date about changes with respect to the number of factors which affect the life expectancy of the residents residing in a particular country. The ratings for these factors will, from time to time, need to be adjusted accordingly.
While underwriting occupation, avocation and residential risk, the underwriters have to appreciate the factors which give rise to additional risk. Based on the factors, the underwriter can then decide what terms can be offered. The terms offered can comprise : restricting certain benefits; or charging extra premium for the benefits; or totally denying terms for certain benefits
Information on rating can be available in the company manual or the reinsurance manual.

Important Points for IC 22 - Life Insurance Underwriting Exam