Underwriting Certificate - Session 7: How Carriers Underwrite

The Underwriting Certification Program helps train and develop new underwriters on the life insurance underwriting process, while certifying existing underwriters on the key skills, responsibilities, and best practices that are essential for their role. The program, which has been designed with a life insurance focus, is comprised of nineteen online learning modules with mastery quizzes for each module.

Session Overview

Session 7 - How Carriers Underwrite
This session delves into the intricate process of how insurance carriers underwrite policies. It explores the assessment of risks and their correlation to the pricing of insurance products. Participants learn about the role of actuaries in using mortality data to calculate premiums for each risk class, ensuring that premiums cover anticipated mortality costs associated with each class. The session highlights the importance of identifying various risk factors, such as medical impairments, lifestyle choices, and demographic factors, in determining the appropriate premium rates for policyholders. Additionally, it discusses different underwriting guidelines, including standard versus preferred guidelines, table shave and crediting programs, and risk assessment credits for rated cases. Through detailed examples and explanations, participants gain insights into the nuanced process of underwriting and its impact on insurance premiums and policy coverage. 

PROFESSIONAL DEVELOPMENT COMMITTEE

COURSE CONTRIBUTORS