Application
The primary duties of an underwriter are to assess risks (applications), approving or declining applications, determining premiums and protecting the insurer against adverse selection
Changes to application
If the producer alters or changes the application information in any way without informing the the applicant or insurer, he or she may be engaging in fraud. Therefore, any changes made to an application by a producer must be initialed by the applicant (an
Field underwriting
During this process the producer determines which risks are desirable and submits those to the underwriting department for approval. The producer also possesses some additional duties to with regard to the application process
MIB (Medical Information Bureau)
An information database that stores the health histories of individuals who have applied for insurance in the past. Most insurance companies subscribe to this database for underwriting purposes.
Policy delivery
Once the application is submitted and underwritten and coverage is approved, the policy is issued and must be delivered to the policy owner. When a producer delivers the policy, this means that the insurer has 'accepted' the applicant's offer. It also mea
Premium receipts
A receipt given out to a policy holder, by the insurer or an agent on behalf of the insurer, which provides confirmation that payment has been received.
Representations
true statement made by the the applicant in response to Section 1 or 2 questions on the applications
Required signatures
When a producer completes an application, he or she must include at least 2 required signatures: that of the applicant and the producer. If 3rd party ownership is present, 3 are required: The applicant, the producer, and the proposed insured
Risk classifiations
used to determine the premium on your life insurance policy. Four main factors are used to determine the total premium - your age, the amount of coverage, the number of years the coverage is guaranteed, and the risk class.
Warranty
A material stipulation in the policy that if breached may void coverage