Insurance underwriting takes into account many factors in granting coverage to the insured. The most important of which are the age, health and medical history, occupation and hobbies. All these are factored in to gauge the level of risk that can be attributed to insuring a certain individual.

Insurance companies generally require a medical examination on any policy face amounts of $100,000 or greater. Most examinations would include a blood draw, urine specimen plus a series of medical history questions. An EKG may be required either for larger policies or if the applicant is at an older age.

By providing complete and accurate records of medical history, precious time is saved during the underwriting process. Trying to cover up one’s medical history to qualify for a better insurance rate is practically useless. Medical records can easily be tracked down by insurance companies through the results of the insurance medical examination or through the Medical Information Bureau. In fact, it is best to provide the contact number of one’s attending physician so that the insurer can request the records from the doctor’s office when it is required. There is no need to indicate a doctor on the application if there is no significant medical history to talk of. Listing down a doctor for the sake of just listing one can trigger an insurance company to track down non-existent medical records.

The older a person gets, the less insurance can be bought without a medical examination. The applicant is responsible for any information that bears his/her signature. Errors and omissions can lead to higher premiums or coverage terminations. A policy can be declared void if any information is misrepresented.
The insurance company essentially wants to know if the applicant has any health condition that could shorten his/her life and thereby increase the company’s risk. Results of tests are sent directly to the home office for the underwriter to review. The applicant can send a written request if he/she wants a copy of the results.

The underwriter has the option to order whatever additional tests deemed necessary. An applicant can be turned down for coverage if it is found out that he/she is chronically ill. The remaining option would be to look for a high-risk carrier or one that offers guaranteed issue life insurance. Life insurance is issued at the rate quoted if the applicant aces the medical examination or offered a policy with a higher premium when a medical disorder is discovered.

Underwriters assess health conditions based on a tightly defined underwriting manual. Agents can argue the rating for the applicant but might mean additional medical tests to prove the point. The medical information remains at the insurer’s fingertips and becomes part of the record in the MIB for seven years whether the applicant chooses to decline the life insurance policy or not. However, everyone has the right to make sure that the information as contained in the MIB file is correct. Although at first glance the MIB appears to be an obstacle for some to get life insurance at the best rates, the safeguard is necessary to keep rates as low as possible for all insurance customers.

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