Underwriting

Underwriting is the process by which an insurance company evaluates an applicant's risk profile to determine whether to offer coverage, at what premium, and on what terms. Life insurance underwriting analyzes medical history, current health, family history, height and weight, tobacco use, occupation, hobbies, motor vehicle records, and financial information. Underwriters use this information along with actuarial mortality tables to assign a risk classification — preferred, standard, or substandard — and set the appropriate premium. The underwriting process may include a medical exam, blood and urine tests, attending physician statements, prescription database checks, and MIB report review. Accelerated underwriting programs use algorithmic models to issue decisions without a medical exam.