Life Underwriting Jack of All Trades, Master of Hats

Sheila Filipi
Leadership Development
State Farm Life Ins. Co.
 Competition in the Life Insurance Industry
 Where does Underwriting fit in?
 Role of the Underwriter
 Risk Classification
 Underwriting Tools
 Types of Risk
 The Underwriting Decision
 Case Study
 In the News
 Mutual versus Stock
 Multiline versus Life only
 Financial Services organizations
 Mortality
 Persistency
 Expenses
 Investments
 Risk selection
 Product knowledge
 Producer support
 Customer advocacy
 Support of organizational goals
The Key: Understand the complete picture and
know what’s important
It’s about BALANCE – obtaining the right type and
amount of information to appropriately classify
the risk
 Application
 Examinations
 Interviews/Questionnaires
 Blood/Urine/Oral Fluid
 EKGs
 Prescription Drug History
 Attending Physician Statements
 Motor Vehicle Records
 Inspection Reports
 Medical Risk
 Financial Risk
 Motor Vehicle Risk
 Foreign Travel/Residence Risk
 The Occupational Exposure
 Avocation
 Aviation
 Personal Risk
 Insurable Interest and Ownership
 Beneficiaries
 Antiselection
 Often times use a standard manual
 Average or “standard” mortality risk represented by a
value of 100%
 Factors that impair or improve mortality are assigned
debits and credits accordingly
 Overall risk is given a score that translates into a final
 Judgment of Underwriter is needed to adjust for
variable factors given the specifics of any individual
 Discounts from Standard (ex: Preferred, Super
 Table Ratings
 Flat Extras
Case Study
Coverage: $150,000 Term policy
App date: 3 days ago
Gender: Male
Age: 37
Marital Status: Married
Occupation: Laborer
US/Canadian Citizen: yes
Tobacco use in the last 12 months: yes
Beneficiary: Spouse
Application medical history: work physical 6 months ago Dr. Adams
Underwriting requirements: blood, urine, vitals, interview, motor vehicle report
What needs to be investigated from the app?
The MVR is received: no violations and a valid license
Interview is received: physical 6 months ago all within normal limits, takes albuterol for exercised induced asthma no emergency room visits or hospitalizations sees Dr. Smith,
and metformin for diabetes hem A1C is under good control see’s Dr. Phillips.
What are we concerned with?
Labs and vitals are received: labs – hem a1c = 6.7 (good control), height and weight is 5.10.275 (normal weight for this height range is around 200lbs)
What are we concerned with?
Medical records are received. Show diabetes is type 2 diagnosed 2 years ago medication is metformin daily. Good control. Struggle with weight however has maintained
current weight 5.10.275 for 3 years
What should we do?
 Stranger-Owned Life Insurance
 Simplified Issue Products
 Genetics and Underwriting
 Epidemics
 Privacy
 Underwriting Manuals

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