1
Q
What has the life insurance industry evolved to include beyond term and whole life policies?
A
- Universal life policies
- Variable life policies
These policies have unique distinguishing features designed to meet the needs of insureds.
2
Q
What is the primary concern in underwriting life contracts?
A
Mortality
The approach to underwriting at the time of a new business application is usually well laid out.
3
Q
What are the typical underwriting requirements driven largely by?
A
Age and amount
The underwriting of all policies is largely treated the same despite the evolution of the industry.
4
Q
What is a key difference between post-issue policy changes and new business underwriting?
A
Less uniform approach and treatment
The practices and rules governing post-issue changes can vary considerably.
5
Q
What are the universal key concepts to keep in mind for post-issue policy changes? List them.
A
- Contractual vs. non-contractual policy provisions
- Change in amount at risk
- Insurability
- Anti-selection
- Customer/producer/company
These concepts provide an appropriate frame of reference when considering post-issue policy changes.
6
Q
What does the life insurance policy represent?
A
A legal document describing the contractual agreement between the owner and the insurance company
It contains legally binding promises.
7
Q
What are key contractual provisions for post-issue transactions? List them.
A
- Incontestability
- Grace period
- Reinstatement
- Conversion privilege (for term policies)
The wording of these provisions can differ from company to company.
8
Q
True or false: The underwriting requirements for policy increases are the same as for reinstatements.
A
FALSE
Typical age-and-amount requirements may not be suitable for reinstatements or tobacco to non-tobacco changes.
9
Q
What are the contractual rights of the policyowner regarding post-issue changes?
A
Ownership and beneficiary changes
These changes are scrutinized due to life settlements and stranger-owned life insurance transactions.
10
Q
Underwriters should be familiar with the laws applicable to which jurisdictions?
A
United States and Canadian policies
Different countries may have different laws governing these provisions.
11
Q
What are optional riders in life insurance policies?
A
Additional provisions that can be elected or purchased at application
These riders can permit post-issue changes without underwriting evidence.
12
Q
What is a common example of a guaranteed insurability rider?
A
Allows defined increments of additional insurance to be purchased at set future intervals
This rider can typically be exercised without underwriting evidence.
13
Q
What type of changes typically require underwriting evidence?
A
- Face amount increases
- Tobacco to non-tobacco changes
- Risk reclassifications
These changes are non-contractual and not legally obligated by the company.
14
Q
What are the 2001 CSO mortality tables used for in the life insurance industry?
A
Adoption and pricing of new products
The IRS issued guidance and restrictions impacting policy changes based on these tables.
15
Q
What does Notice 2006-95 provide guidance on?
A
Use of 1980 CSO or 2001 CSO in determining reasonable mortality charges
It impacts various rules and grandfathering of contracts issued based on previous tables.
16
Q
By what date were all U.S. carriers expected to have CSO 2017 compliant products?
A
January 1, 2020
The impact on older policies regarding policy changes is expected to be similar to previous tables.
17
Q
True or false: Post-issue changes are always a contractual right of the policyowner.
A
FALSE
Some changes are non-contractual and not legally obligated by the insurance company.
18
Q
What is a key element for the underwriter to consider regarding policy changes?
A
Whether the resulting change will increase or decrease the amount at risk
Understanding the impact on the amount at risk is crucial for underwriting decisions.
19
Q
If the amount at risk produced by a change is less, what does the underwriter generally require?
A
Less (if any) evidence of insurability
This indicates a lower risk associated with the policy change.
20
Q
True or false: A change in face amount always results in an increase in the net amount at risk.
A
FALSE
A policy can have an increased face amount while the net amount at risk declines.
21
Q
What happens to the net amount at risk when switching to a level death benefit from an increasing death benefit option?
A
It can decline
The increased face amount may be covered by cash value, reducing the insurer’s risk.
22
Q
What is another key element in the consideration of policy changes besides the amount at risk?
A
Insurability
Changes in insurability can affect the evidence needed for underwriting.
23
Q
What is the primary concern of the underwriter regarding insurability?
A
Adverse change in health
Positive changes in health may also be considered for rating reductions.
24
Q
Name some tools used to determine insurability.
A
- MIB (Medical Information Bureau)
- Nonmedical health questionnaire
- Paramedical exam
- Blood profile
- Urine specimen
- Prescription history report
- Physician’s records
The choice of tools depends on the specific policy change requested.
25
Define **anti-selection**.
The adverse impact upon insurers when insureds select coverage for risks likely to generate **losses**
## Footnote
This can involve withholding pertinent information about adverse changes in insurability.
26
What must the underwriter be vigilant for when considering **insurability** for policy changes?
Indicators that suggest the insured knows more than is being **disclosed**
## Footnote
This vigilance helps prevent losses due to anti-selection.
27
What is the **amount** of the spouse rider applied for by John Doe?
$95,000
## Footnote
This rider was added to John Doe's insurance policy.
28
What does the **MIB** reveal about John Doe's application?
A recent code related to another undisclosed insurer's exam
## Footnote
This indicates potential undisclosed health issues.
29
What type of findings were revealed by the lab vendors regarding John Doe's spouse?
Undisclosed, recent lab findings that are uninsurable
## Footnote
This information was not disclosed in the application.
30
What is considered **anti-selection** in the context of insurance?
Failure to disclose information by John Doe
## Footnote
This can lead to adverse selection against the insurer.
31
List the **four factors** that can impact the customer/producer/company relationship.
* Demographics of the market
* Type of producer relationship
* Business structure of the insurer
* Company philosophy
## Footnote
These factors contribute to varying approaches to policy changes among insurers.
32
What are some **routine policy changes** that do not require underwriter review?
* Address changes
* Name changes due to marriage or divorce
* Modal premium changes
* Beneficiary and/or ownership changes
* Exercise of a guaranteed insurability rider
* Conversion of a term policy
## Footnote
These changes are typically straightforward and do not involve risk assessment.
33
What is the **defining role** of an underwriter in the insurance process?
To make the final determination of risk acceptance, amount, and rate
## Footnote
This role is crucial for both new business and post-issue policy changes.
34
True or false: Underwriters are responsible for signing off on evidence-based decisions.
TRUE
## Footnote
They are accountable for the decisions made regarding risk acceptance.
35
How do underwriters add **value** to the policy change process?
By impacting policyholder perception and retention
## Footnote
Their decisions can influence whether policyholders keep their policies in force.
36
What is the primary focus of **effective underwriters** when evaluating policy changes?
* Risk selection skills
* Evidence-based change evaluation
* Consideration of customer impact
* Consideration of producer impact
* Consideration of company impact
## Footnote
Effective underwriters look beyond the immediate policy change to understand its broader implications.
37
True or false: **Policyholders** typically have the same perspective as underwriters regarding policy changes.
FALSE
## Footnote
Policyholders often lack knowledge of insurance practices and may misunderstand their rights regarding policy changes.
38
What can happen when a policyholder's producer is no longer servicing the contract?
* The policyholder becomes 'orphaned'
* The policyholder deals directly with home office staff
## Footnote
This situation can complicate communication and service for the policyholder.
39
What is a common expectation of **policyholders** regarding their producers after a policy is issued?
To receive the same level of attention as during the new business process
## Footnote
However, producers may have less financial incentive to maintain this level of service over time.
40
What are two important factors from the **company's perspective** regarding post-issue policy changes?
* Limited additional premium income
* Need for cost-effective customer service
## Footnote
Most post-issue changes do not generate additional income and may even reduce premiums.
41
Fill in the blank: Most post-issue policy changes will not result in additional _______ to the insurer.
premium income
## Footnote
This can lead to a focus on minimizing associated expenses.
42
What can differ among insurers regarding **non-contractual policy changes**?
* Accommodating philosophies
* Approaches to policyholder requests
## Footnote
Insurers may have varying levels of flexibility in handling non-contractual changes.
43
What is the **contestability period** for life insurance policies?
Two years
## Footnote
During this period, the insurer can contest the validity of the policy contract for material misrepresentations.
44
What are **material misrepresentations** in the context of life insurance?
Statements that are false and would have resulted in a less favorable risk classification if disclosed
## Footnote
The insurer has the burden to investigate these issues during underwriting.
45
What happens if a **policy change** is requested during the first two policy years?
Adverse information may come to light that predates the issue date
## Footnote
This situation should be investigated to determine if the policy should be contested.
46
True or false: Failing to investigate adverse information during the contestability period waives the right to contest the policy later.
TRUE
## Footnote
This can increase the company's risk due to possible underpricing.
47
What occurs if a **policy change** happens after the two-year contestable period?
A new contestable period can start for the new transaction
## Footnote
For example, an increase in policy coverage would be contestable for two years from its effective date.
48
What is the implication of adding a **spouse rider** to a life insurance policy?
It starts a new contestable period from its effective date
## Footnote
The original face amount would no longer be contestable.
49
What are the reinsurance implications for policies that have been **ceded**?
Consideration must be given to the reinsurer's role in the transaction
## Footnote
This applies to business that includes coverage reinsured on a first dollar quota-share basis.
50
What does a reinsurance treaty provision typically require from the ceding company?
To follow normal established procedures and practices
## Footnote
This is necessary to process post-issue policy changes.
51
What is the role of a **lead reinsurer** in pooled business?
To streamline the decision-making process
## Footnote
The lead reinsurer can make binding decisions for all participating reinsurers in the pool.
52
What does **facultatively reinsured business** involve?
* Policies reviewed by reinsurers
* Reinsurers agree to accept the risk
* Coverage ceded in whole or part
## Footnote
Requires concurrent approvals for any post-issue policy changes that materially affect the reinsurers' share.
53
What must happen for **post-issue policy changes** that materially affect the reinsurers' share?
Must have the reinsurers' concurrent approvals
## Footnote
The nature of required evidence is generally left to the ceding company.
54
What are the **typical requirements** for new business in facultative reinsurance?
* Clearly defined underwriting requirements
* Based on age of proposed insured
* Based on amount of coverage applied for
## Footnote
The amount and types of evidence typically increase with age and amount.
55
For **evidence-based, post-issue policy changes**, what is true about the requirements?
No one set of requirements is appropriate for all transactions
## Footnote
Changes resembling new business requirements involve additional coverage.
56
What are examples of changes that may require **fewer requirements**?
* Tobacco to non-tobacco changes
* Rating reductions
## Footnote
These changes may not require extensive evidence.
57
What is a common provision in most **term policies** regarding conversion?
Permitting conversion to permanent products without evidence of insurability
## Footnote
Typically requested within a set time frame or age limit.
58
When converting a term policy, what happens to the **risk class** for the new policy?
* Same as the term policy
* Best comparable class available on the permanent product
## Footnote
Example: If the term policy was preferred plus, the new rate class could be preferred.
59
What happens if the insured wishes to **increase the face amount** when converting to a new policy?
Underwriting requirements will be needed
## Footnote
Typically based on age and amount, considering retention or reinsurance concerns.
60
What scenario may require **evidence of insurability** during conversion?
Conversion from an individual term policy to a survivor life or second-to-die policy
## Footnote
Evidence would be needed if the second life to be insured had no prior term coverage.
61
What is a **second-to-die policy**?
A life insurance policy that pays out upon the death of the second insured individual
## Footnote
It is often used in estate planning to cover taxes or other expenses.
62
When converting a **term policy** to a second-to-die policy, what is a key consideration regarding the **face amount**?
Whether the face amount of the new second-to-die policy is the same as, or more than, the term policy
## Footnote
Insurers may limit the new policy's face amount to that of the original term policy.
63
True or false: Insurers can underwrite a **survivor life policy** by getting underwriting requirements on each party for one-half the amount applied.
TRUE
## Footnote
This approach allows for a simplified underwriting process.
64
What is a **guaranteed renewable term**?
A renewal that can be completed without evidence of insurability
## Footnote
The premium reflects the older age of the insured.
65
What happens during a **re-entry** of term insurance policies?
Policies that have reached the end of their coverage period are considered for renewal
## Footnote
The renewal may require evidence of insurability for more favorable premiums.
66
What is the typical requirement for evidence when renewing a term policy?
The same evidence as would be required for an equal amount of new business coverage
## Footnote
This is based on age-and-amount underwriting requirements.
67
What is one approach to streamline the **re-entry process**?
Utilizing a nonmedical part two and appropriate physicians' records
## Footnote
This can encourage retention of the business.
68
If evidence is unfavorable during re-entry, what can happen to the policy?
Re-entry can be denied, but the policy can renew at more expensive premiums
## Footnote
These premiums are based on the insured's original issue age and current policy duration.
69
What factors should be considered regarding **policy changes**?
* Insurer's risk
* Market needs
* Pricing expectations
* Retention vs reinsurance
## Footnote
These factors influence the underwriting and renewal processes.
70
What is a **1035 exchange**?
An exchange of an insurance policy for a new life insurance policy without paying tax on investment gains
## Footnote
Governed by Section 1035 of the Internal Revenue Code.
71
What is one requirement of a **1035 exchange**?
No gain or loss shall be recognized on the exchange of a contract of life insurance for another contract of life insurance
## Footnote
This ensures tax benefits during the exchange.
72
What are the two types of **1035 exchanges**?
* External (one company's policy replaced with another company's policy)
* Internal (one company's in-force policy replaced with a new one from the same company)
## Footnote
Each type has different underwriting considerations.
73
From the **insured and producer's perspectives**, what is the risk associated with a **1035 exchange**?
The company is already at risk on the life insured under a 1035 exchange policy
## Footnote
This perspective assumes little or no need for evidence to effect the change.
74
What is a potential **increased risk** for the insurer during a **1035 exchange**?
* New policy reflects actuarial pricing based on new business
* Possible lower premium despite the insured's older age
* Adverse change in the insured's health
## Footnote
These factors can lead to greater risk despite equal coverage.
75
Why might internal exchanges require the same **evidence** as new business?
To assess the increased risk associated with the new policy despite the coverage amount remaining equal
## Footnote
This is due to potential changes in health and underwriting standards.
76
What is an **economic incentive** for insurers regarding internal **1035 exchanges**?
To keep the cost of internal 1035 exchanges to a minimum
## Footnote
High expenses for full new business evidence may lead to insureds taking their business elsewhere.
77
What factors can influence the **evidence** required for a **1035 exchange**?
* Retention limits
* Reinsurance arrangements
## Footnote
These factors determine the flexibility of the insurer in handling exchanges.
78
True or false: A **1035 exchange** allows for tax on investment gains earned on the original contract.
FALSE
## Footnote
The exchange does not recognize gain or loss, providing tax benefits.
79
What is the **process** by which a life insurance company puts back in force a policy that has been terminated due to nonpayment of premiums?
Reinstatement
## Footnote
Reinstatement can also apply to policies continued under non-forfeiture options.
80
What are the two conditions under which a policy can be **reinstated**?
* Terminated due to nonpayment of renewal premiums
* Continued under extended term or reduced paid-up insurance
## Footnote
Laws regarding reinstatement vary between the U.S. and Canada, and among U.S. states.
81
Typically, the minimum period for offering reinstatement to the policyholder is between _______ and _______.
two and three years
## Footnote
Insurers can provide a longer reinstatement period than required by law.
82
What is required to request a **reinstatement**?
Completion of a reinstatement application
## Footnote
This application is generally simpler than a new business application.
83
What factors influence the **requirements** for reinstatement?
* Whether the policy was facultatively reinsured
* Policy face amount
* Current policy values
* Age of the proposed insured
* Duration policy had been in force
* Duration it has been lapsed
* Prior lapses and reinstatements of the same policy
* Disclosed health history on the reinstatement application
## Footnote
Requirements may vary based on these factors.
84
True or false: The **contestable period** begins anew if a policy is reinstated.
TRUE
## Footnote
This applies only to misstatements made in the reinstatement application.
85
Policies that have been long in force with no prior lapse may be reinstated without further requirements if they have a favorable _______.
MIB
## Footnote
MIB stands for Medical Information Bureau.
86
What additional evidence may be required for reinstatement if there is a substantive change in health?
Obtaining physician's records
## Footnote
This is necessary if there are suggestions of health changes in the current health declarations.
87
What is the **common practice** regarding extra mortality for policies long in force and with short duration of lapse during reinstatement underwriting?
* Absorb two to four tables of extra mortality
## Footnote
This practice helps maintain premium income that the company would otherwise lose.
88
When reinstating a policy, what must be considered if the **current risk class** is less favorable than the original assessment?
* The reinstatement must be declined
## Footnote
It is not permissible to reinstate the policy at a higher risk class than the original.
89
What are some **logical motivations** for requesting an increase in a policy death benefit?
* Marriage
* Birth of a child
* New home purchase
## Footnote
These life changes often prompt individuals to reassess their insurance needs.
90
How is a request for increasing the **policy death benefit** typically handled?
Like new business, with evidence based on the insured's attained age and the amount of the increase
## Footnote
Vigilance to a possible adverse change in health is prudent when motivation is not evident.
91
Name some **plan benefits or riders** that can be added to a policy after it has been placed in force.
* Annual renewable term riders
* Annual renewable and convertible term riders
* Children's term riders
* Disability income riders
* Waiver of premium riders
## Footnote
The requirements for establishing evidence of insurability vary depending on the specific rider and insurer's risk tolerance.
92
What is the primary risk considered when underwriting a **premium waiver or disability income benefit**?
Morbidity rather than mortality
## Footnote
Health histories that pose no evident mortality risk might not prompt a request for physician's records.
93
What should underwriters familiarize themselves with regarding their products?
Definition of disability
## Footnote
Understanding how disability claims might be administered could influence decisions on approving benefits.
94
95
What are the **two classifications** used by insurers to distinguish between tobacco and non-tobacco users?
* Smoker vs. Non-smoker
* Any form of tobacco use
## Footnote
Definitions may vary, with some insurers including smokeless tobacco and others focusing solely on cigarette use.
96
What is the **time frame** some carriers use to determine eligibility for non-tobacco designation?
* 12 months
* 24 months
* 36 months
* Longer
## Footnote
There is no consensus on the time frame, and it can vary by insurer.
97
True or false: All insurance companies use the same **definition** of tobacco use.
FALSE
## Footnote
Different companies may have varying definitions and criteria for tobacco use.
98
What is a common requirement for juveniles to qualify for **non-tobacco rates** once they reach adulthood?
A signed statement that the insured does not use tobacco
## Footnote
Juvenile policies often use aggregate rates, anticipating future changes to non-tobacco rates.
99
What evidence might be required for an **individual life policy** to establish non-tobacco status?
* Signed statement
* Health records
* Cotinine test results
## Footnote
Requirements can vary significantly between insurers.
100
What are some **risk classes** that may differentiate tobacco use?
* Standard
* Preferred
* Preferred Plus
* Super Preferred
## Footnote
Each class may have different criteria regarding tobacco use and time frames.
101
Fill in the blank: A **standard nonsmoker** may require no cigarette use within _______ months.
12 months
## Footnote
This can vary, with preferred classes requiring longer periods without tobacco use.
102
What can complicate the **standards** for tobacco use within the same insurance company?
Multiple standards tied to product and risk class
## Footnote
Different products may have varying definitions and time frames for tobacco use.
103
What is the potential **premium discount** for qualifying as a non-tobacco user?
Reduced premium
## Footnote
The amount of discount can vary based on the insurer's policies.
104
What is the **minimum requirement** for individual life policies issued to adult tobacco users applying for a change to non-tobacco?
* Statement of non-tobacco use
* MIB check
* Urine specimen with cotinine test
## Footnote
Some insurers may accept only these requirements despite other evidence of adverse health changes.
105
True or false: Insurers are **contractually obligated** to reduce the premium if an insured discontinues tobacco use.
FALSE
## Footnote
Insurers cannot raise premiums on existing insureds with adverse health changes, but they are not obligated to reduce premiums.
106
What may some insurers require in addition to the minimum requirements when considering a change from tobacco to non-tobacco status?
* Physician's records
## Footnote
This is particularly relevant when there is evidence of an adverse change in health since policy inception.
107
In the context of **second-to-die policies**, what complication arises when one insured requests a change from tobacco to non-tobacco?
The status of the other insured life
## Footnote
Some insurers may consider the health status of both lives when evaluating the change request.
108
What is the **protective value** of a cotinine test when a proposed insured delays requesting a change in policy after an age change?
More demonstrable
## Footnote
If the insurer provided notice of eligibility and the insured delayed significantly, the need for a cotinine test becomes clearer.
109
What is one viewpoint regarding the acceptance of a tobacco status change in the presence of an **adverse health change**?
Accepted unless the adverse change is related to smoking
## Footnote
Conditions like coronary artery disease or lung cancer may affect this acceptance.
110
Fill in the blank: For some insurers, a urine specimen may be required to check for _______.
cotinine
## Footnote
Cotinine is the metabolite of nicotine.
111
What happens if an insured who was previously a **standard non-tobacco** user has an adverse health change?
Their risk class may increase significantly
## Footnote
This can affect the premium but cannot lead to an increase in the premium for existing insureds.
112
What does a change from **standard to preferred** represent?
A change from a non-rated risk class to a more favorable premium class
## Footnote
This includes changes such as standard to preferred plus and preferred to super preferred.
113
What is the first question to consider when changing from **standard to preferred**?
Whether the requested more favorable class was available at the time the policy was issued
## Footnote
Insurers have alternate views on this point.
114
What is one view regarding the availability of a more favorable class at the time of issue?
Insureds should be precluded from being considered for that class if it was not available at the time of issue
## Footnote
This view aims to protect the original block of business.
115
What is a contrary position regarding the consideration of a more favorable class?
Denying consideration encourages the insured to seek new coverage with another insurer
## Footnote
This results in a deteriorating block of business and loss of a favorable risk.
116
What should be the approach regarding evidence required for a change to a more favorable risk class?
Keep requirements to the minimum necessary to establish qualification
## Footnote
This is due to the insurer already being at risk on the life.
117
What is the economic incentive for insurers when changing risk classes?
To keep requirements to a minimum
## Footnote
This is especially true for substandard reductions.
118
What are typical requirements for **substandard reductions**?
* Policy change application
* MIB authorization
* Prescription records
* Appropriate physicians
## Footnote
Unlike moving to better risk classes, fewer requirements are needed for substandard reductions.
119
What may be approved if there is a demonstrable improvement in the **health of the insured** since the time of issue?
Risk reduction
## Footnote
The risk reduction may be approved upon review of the requirements submitted for a reduction in rating for medical impairment.
120
If the policy was **facultatively reinsured**, who needs to review and approve the requested change?
The reinsurer
## Footnote
The reinsurer will need to review and approve the requested change made in the policy change application.
121
What starts anew from the date of the **rate reduction**?
The contestable period
## Footnote
The contestable period starts anew for representations.
122
What are **nonmedical substandard reductions**?
* Rated for occupation
* Aviation
* Avocation
* Foreign travel or residence
## Footnote
These reductions may have fewer requirements than medical reductions.
123
What might the evidence for nonmedical substandard reductions consist of?
* Policy change application
* MIB authorization and report
* Current aviation, avocation, or travel questionnaire
## Footnote
The requirements can be even fewer than for medical reductions.
124
True or false: There is no reason to reduce the premium for insureds who no longer engage in a hazardous activity due to an adverse change in health.
TRUE
## Footnote
This reasoning suggests that physician's records may be needed even if the original basis for the rating has been eliminated.
125
What is an option to consider regarding **aviation risks** when the insured no longer pilots planes?
* Remove the aviation extra
* Replace it with an aviation exclusion rider
## Footnote
Factors to consider include the language of the exclusion and the insured's current status regarding piloting.
126
What are the two types of **post-issue policy changes** that historically have not required underwriting?
* Ownership changes
* Beneficiary changes
## Footnote
These changes are a contractual right of the policyholder.
127
What has the life insurance industry seen an evolving interest in since about 2004?
Life settlements
## Footnote
This includes transactions known as stranger- or investor-owned life insurance (STOLI, SOLI, OLI).
128
What are some **legitimate uses** for life settlements?
* Financial planning
* Estate planning
## Footnote
However, there have also been abuses with negative consequences to insurers and insureds.
129
What are **typical triggers** that can prompt reviews of post-issue policy changes?
* Ownership change requests
* Beneficiary change requests
* Changes occurring shortly after policy issue
## Footnote
Especially relevant for older age insureds and larger amount policies.
130
What concerns arise when ownership or beneficiary changes occur shortly after policy issue?
* Possible fraud regarding original purchase
* Possible misrepresentation on application questions
* Possible nondisclosure of material health information
* Possible falsification of financial information
## Footnote
These concerns are critical for underwriters to assess during the review process.
131
During which period is a contract considered **contestable**?
The first two policy years
## Footnote
During this time, the insurer can investigate for misrepresentation and potentially file for rescission.
132
What happens if transactions occur after the **two-year contestable period**?
* Insurer's options are limited
* Fraud is theoretically not constrained by contestability
* Proving fraud is difficult and rarely pursued
## Footnote
This makes it challenging for insurers to act on suspected fraud after this period.
133
What skills are necessary for underwriters when dealing with **post-issue policy changes**?
* Expertise in underwriting new business
* Knowledge of policy contractual provisions
* Understanding of state-specific regulations
* Ability to determine appropriate requirements in non-rules-based settings
## Footnote
Balancing the needs of the policyowner, producer, and insurer is also crucial.
134
True or false: The decision to approve a post-issue policy change is influenced only by the facts developed.
FALSE
## Footnote
Company philosophy and reinsurance constraints also impact the decision.
135
How does the approach to underwriting policy changes compare to underwriting **new business**?
* Greater variation between companies
* Underwriting for policy changes can continue as long as the policy is in force
## Footnote
In contrast, underwriting for new business ends at policy issue.
ALU 202
flashcards
Decks in class (7)
# Cards
