Novel Coronavirus Disease and Life Insurance Underwriting

One carrier has a program that uses no-touch medical and non-medical resources to underwrite cases without the need for a traditional paramedical exam. In some situations, an attending physician statement (APS) will be requested. Qualifying cases are limited to ages up to and including 55. The permanent products are limited to some of their products.

A second carrier has an underwriting process that expands the use of electronic medical records (Human API). Human API is a health data network that gives consumers a simple way to share their health data. This carrier takes the responsibility for ordering medical records on all cases through their system. This program is open to ages 18-60, $3 million face amount max, as well as to term and permanent policies.

Another carrier offers an expanded fluid-less underwriting process available for ages 18-40 with up to $2.5 million face amount. Clients aged 41-60 are eligible up to face amounts of $2 million. This process applies to term and permanent products. The application process for term is through the drop ticket or iGO. There is also a phone interview, motor vehicle report, MIB check, and Rx check done for underwriting. The applicant must have had a complete physical, including labs, with all normal results, within the last 24 months.

The COVID-19 pandemic has changed our individual lives and the way we do business that will have long lasting effects. Life insurance companies are changing their underwriting processes to adapt to it.

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Eric Schuhmacher, ALMI, ACS, is the senior underwriter at First American Insurance Underwriters Inc. of Needham, Massachusetts.