What Is Underwriter? Definition | Epic Life Glossary

Why it matters

Underwriters review answers, prescription history, MIB records, and sometimes doctor records. They place the applicant in a risk class and set the price. Agents work with them to submit cases and answer questions. Many carriers now use automated engines for simple cases and people for complex ones. Their decisions can differ, so the same case may get a different result at another carrier.

Source: law.cornell.edu

Related terms

Underwriting: Underwriting is the process a carrier uses to review an application, judge the risk, and decide whether to offer coverage and at what price. It looks at health, age, habits, and history.
Underwriting Class: An underwriting class is the group a carrier places an applicant in after review, such as preferred or standard. Each class has its own premium rate, with healthier groups paying less.
MIB (Medical Information Bureau) (MIB): MIB is a membership organization that holds coded information from past life, health, and disability insurance applications. Member carriers check it to verify what an applicant has told them.
Prescription History Check (Rx) (Rx): A prescription history check is an underwriting step where the carrier reviews a database of past prescriptions filled by the applicant. It helps confirm health answers and find conditions.
Decline: A decline is a carrier's decision not to offer life insurance to an applicant after underwriting. The carrier judges the risk too high for the plan applied for.

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