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Lecture 4 New Business Procedures (Step 2: Underwriting (Medical Evidence…
Lecture 4 New Business Procedures
Step 1: Application
Proposal Form
Step 2: Underwriting
Point of Sale Underwriting
enables the salesperson to advise the customer that he or she will be accepted for the risk proposed, and to complete the sale
Additional advantage that proposals can only be accepted if all questions are answered
Medical Evidence Requirement
PMAR (Private Medical Attendant's Report) -
Proposer's Doctor
Information on patient and illnesses for which he has treated
Record of previous illnesses from date of commencement of record card
MER (Medical Examiner's Report) -
Insurer's Doctor
Section 1: Personal statement (answered by proposer, filled in by doctor)
Section 2: Insurer's questions to the doctor regarded life insured
Section 3: Doctor's Opinion
Acceptable at ordinary rates
Acceptable at special rates
Deferred for a specific reason
Uninsurable
Other Medical Reports
Hospital Reports
Electrocardiogram
Chest X-Ray
HIV Tests
Other Specialist Reports
Proposal Form
Step 3: Acceptance
Acceptance Terms are communicated via acceptance letter
It is unfair to decline a proposal if there is a possibility of some improvement in the not too distant future
Step 4: Commencement of Risk