by managerbj45 » Sat Dec 13, 2008 03:48 am
For some of you who don't already know, underwriting is one of the aspects of insurance that make people's eyes glaze over. Underwriters deal with statistics - they're number crunchers. Many people who have an insurance policy don't know that at some point their application has passed through an underwriters hand.
The reason why underwriting is so important is because when you apply for insurance, your application is being looked at by an underwriter. The underwriter will determine how much you will pay for your insurance based on the condition of your health, or any mistake on your application.
No big deal right? You can always go to a different insurance company right? Not likely! Applying for insurance leaves a record. Once you've been denied at one company, you will also be denied at other companies.
So what can you do? The underwriter can not plead your case, but your insurance agent can!
The reason why underwriting is so important is because when you apply for insurance, your application is being looked at by an underwriter. The underwriter will determine how much you will pay for your insurance based on the condition of your health, or any mistake on your application.
No big deal right? You can always go to a different insurance company right? Not likely! Applying for insurance leaves a record. Once you've been denied at one company, you will also be denied at other companies.
So what can you do? The underwriter can not plead your case, but your insurance agent can!
Posted: Sat Dec 13, 2008 06:31 am Post Subject:
Hi Manager, welcome to the forum!
Did you know that many states won't allow a carrier to rate premium based on individual health condition? There are a number of "issue-don't issue" states out there. Group medical expense policies rarely allow a person to be singled out due to a health condition, and normally won't allow exclusions for pre-existing conditions, either. With HIPAAs portability aspect, that's almost a non-issue for most.
Also, I am not aware of any state that allows an insurer to deny issuance of a policy based solely on a person being declined at another carrier. That, however, doesn't mean anything. I certainly don't claim to know all rules in all states, I just know the states we (my company) deals in.
I would be interested to know if you are aware of such as state, so let me know, ok?
Finally, you're absolutely right about underwriting. It's become an automated process with most carriers in the real sense, and if people had a clue on how much their credit had to do with their premiums...
InsTeacher 8)
Posted: Sat Dec 13, 2008 08:49 am Post Subject:
Agreed, underwriting is definitely a lucrative career option. However, I doubt that the consumers are not aware about the existence of the underwriters in the insurance industry. With the modern sources of information and the era of consumer awareness, the customers aren't as naïve as they used to be.
Anyways, glad to see you among us, manager. Hope to get some great insight from you.
Posted: Tue Jan 06, 2009 03:02 am Post Subject: Denied home insurance
My brother was denied home insurance with the reason "underwriting"; he is buying though an escrow company. Are there other reasons like credit rating, criminal records, etc. beside being denied because of health? thanks ...
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Posted: Tue Jan 06, 2009 06:40 am Post Subject:
I have had clients denied health insurance because of DUIs and a drug conviction. I have had clients denied life insurance because of a lot of speeding tickets on their license.
I am glad more states are having risk pool health insurance put into place. A lot of people in my state were in a real bind before that.
Posted: Tue Jan 06, 2009 08:32 am Post Subject:
I bet that the insurance companies have additional reasons to deny coverage apart from the basic underwriting clauses based on the applicants health, age and income.
I know that the homeowner insurer can deny insurance if the property is settled in a high risks area, such as in a surrounding where the crime rate is very high.
Also, the credit score plays an important role in determining your insurability.
These are only few reasons that can get your application denied.
Posted: Tue Jan 06, 2009 03:13 pm Post Subject:
I bet that the insurance companies have additional reasons to deny coverage apart from the basic underwriting clauses based on the applicants health, age and income.
They sure do!
The now defunct king of Credit Default Swaps, AIG, would, does and continues to advertize a male age 40 could get $250,000 of life insurance for less than $15 dollars per month.
However, did your Mother or Father die of cancer or heart disease prior to age 60? If so their bass toward computer underwriting models will slap you with the standard rates which are about double what was quoted.
It's a classic bait and switch, REGARDLESS of you being a perfect physical speciman in all other areas.
AIG - American General...good riddance.
Posted: Wed Jan 07, 2009 11:48 am Post Subject: insurance
I can understand the 'High Risk' thing: ..may be denied Insurance because of DUI's, etc. But......someone posted you could get denied because of your Credit ( if they do a Credit Check)? What does your Credit have to do with Life, Medical, Auto,etc?
Posted: Thu Jan 08, 2009 05:52 am Post Subject:
The underwriter can not plead your case, but your insurance agent can!
IMO the insurance agents are into a truly dynamic profession.
They are like the captain of a ship. They would need to communicate between the carrier and the policyholder, explain the challenges to both parties and fix the deal.
Underwriters on the other hand would work upon a defined protocol. Their job is more qualitative but to me it seems less challenging!
This is the reason I'd disclose all the necessary financial information to an underwriter but would only add my innermost feelings with an agent. Agents should show me my options to achieve something out of nothing.
Posted: Sun Apr 03, 2011 10:19 pm Post Subject: HELP!!
I recently apply for health insurance and i eas denied they told me that when they got my medical records they find out that i had a heart problem which i dont have. what can i do ? ThanK YOU!!
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