Agents should place each client with a company that will not take anyone
in worse health, thus assuring clients the minimum ultimate cost.
The client buys a policy from a carrier where most other insureds
are in at least as good health, so that, on average, the applicant
gets a “subsidy” from the other insureds, rather than provides one
to the rest of the group. For clients without health problems,
agents should seek out the most rigorous underwriter so as not
to disadvantage those clients.
On a regular basis, a husband and wife both apply for coverage and