Life Insurance agent’s role in underwriting

The agent’s role in underwriting

Agents are in direct contact with the proposer and so have an important part to play in the underwriting process and are considered as ‘primary underwriters’.

• The agent has to ensure that the proposal form submitted is completely filled out by the proposer. They also have to make sure that the questions have been answered honestly by the proposer as the proposal form is the basis on which the proposal will be accepted or rejected.

• If the agent is helping to complete the form, they should fill it out honestly and accurately. The answers provided should not be prejudiced in any case. The answers of the respondents should be recorded as objectively as possible and any elements of misinformation or incomplete information need to be avoided.

• Being in direct contact with the proposer, the agent is in a good position to assess why the proposer wants to take out insurance. If they feel that the proposer’s intentions are not genuine, they should mention that in their report. As the agent conducts a personal discussion with the proposer and their family, the agent needs to assess the responses they give. If the proposer supplies information that seems to be contradictory, they need to question them further about it.

• The agent can help the proposer to calculate their human life value (HLV), to determine the amount of life insurance they should take. Taking life insurance as per the HLV calculation amount provides income protection to the family and helps it meet its financial liabilities, even after the income provider’s premature death.

• The agent can speed up the underwriting process by submitting the required documents and the proposal form in a timely manner. Should an additional medical check-up be required, the agent should help the proposer make the necessary appointment with the doctor and ensure the doctor’s report is submitted as quickly as possible.

• If the insurance proposal is accepted, the policy may be sent directly to the insured or given to the agent for delivery. The agent may still have a role to play even if the proposal is rejected. Although the insurance company will send a letter to the proposer explaining why their proposal has been rejected, the agent can get in touch with the proposer personally and explain the reason(s) for the rejection

Anand Khemka
+91-9910936925
+91-8287041341