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How are death benefit increase requests handled?

typically handled just like NB


What are some examples of additional plan benefits or riders?

annual renewable term riders
annual renewable and convertible term riders
childrens term riders
disability income riders
waiver of premium riders


What are the typical evidence requirements on additional riders?

depending on type.
riders providing a death benefit for another life will require evidence based on that individuals age and amount of coverage. \
CTB- may only require a simple non-med
waiver of premiums s/t nonmedical and more


What kind of risk do you need to assess when u/w premium waiver to TDB?

one of morbidity not mortality.

May need to review things such as chronic pain. Not a mortality but a morbidity issue.


What are some difference between companies in regards to SM changes.

1. definition of term Smoker
2. lenght of abstenence.
3. use/time frame
4. preferred calsses.


What are some examples of smoker change requests?

1. non-tobacco changes on juvenile policies,
2.changes on life policys
3. changes on second-to-die policies.


How are juvenile policies structured in terms of SM rates>

usually issued blended then at 18, they can have the option to qualify for non-tobacco rates. - if done promply evidence is minimum.
- the insuere provider must provided notice.


How do individual life policies handle smoker changes?

choice of evidence differes.
- minimum if statement of tobacco use, MIB and urine. some require more evidence.


How does changes in health affect SM status changes?

insurers are not required to lower premiums, therefore if health is worse typically the request to change SM status is decline.

There could be some companies that approve a change even though the health risk has increased, unless the change is related to SM such as CAD, TIA or PVD, or resp disorder.


How are SM changes on Second-to-die policies handled?

1. the focus of the dicussion is about both of the lives not just one. If the one life is now NS with no other adverse health but the other is highly rated, the insurance company is not obligated to change the premiums.


How are standard to preferred risk class change request handled?

1. ask if the more favourable class was available at the time the policy was issued- such request for risk change may not be offered on certain policies as prices do not reflect calculations of preferred classes.
2. Should evidence be required.


What is typically required for a reconsideration of rating (medical substandard reductions)

usually a policy change application
MIB search

if improvement of health is evidence then there may be a risk reduction approval. Review FAC shop if needed, and the contestability period starts again.


What would you consider to be a non-medical substandard reduction?

cases that were rated for occupaiton, aviation, avocation, and foreign travel/residency.
- usually less medical requirements.
May consider a policy change application, MIB auth, and report, current aviation or avocation or travel questionnaire.


What would you consider when looking at a review of aviation risk when the option to consider is either remove the flat extra or replace with exclusion rider?

1. language used in aviation exclusion and whether or not it might unintentionally excluse the risk of being a passenger only
2. do they still hold a valid pilots licencse
3. did they sell their plane?
4. how long its been since they last piloted a plane?


What are two types of post-issue policy changes that can be exercised at the discretion of the policyowner, and that hx have not been required u/w?

the ownership and beneficiary changes.

-typically dont require u/w, unless a "stranger or investor-owned life insurance application) known as STOLI, SOLI and IOLI.


What are some red flags when reviewing ownership and beneficiary changes.

1. completed within short time frame after issue and placement date. Specially on older age insueres and $$$.