MTHEL131 Lecture Notes - Lecture 8: Underwriting, Stroke 9, Electrocardiography
13 Jun 2017
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Underwriting: process/department that evaluates the risk of each applicant. Makes sure that a bad risk is not included in the pool of applicants. When we understand the most common types of death, we can have a good underwriting process: natural disasters, accidents. Workplace: cancer , suicide , aids , diabetes , heart attack , stroke , war. Asks health questions to cover main causes of death. Ex: have you ever had a heart attack? . Blood: cholesterol level, toxins in blood, presence of hiv/aids, long story short: blood is a big deal. Higher blood pressure = higher risk of stroke. Based on age of applicant & amount of policy, underwriter has the right to ask for tests. Signature of applicant on the application allows the underwriter to ask for tests. Life insured can refuse taking tests; insurer can cancel application. Insurer does not perform every test on all applicants because of the cost-benefit analysis.
