Chapter 4
Disability Income Underwriting


The important points addressed in this lesson are:

Disability insurance underwriting generally focuses on three important factors: occupation, health history and overinsurance

The classification of occupations according to the disability hazards they represent results in occupation classes

A proposed insured's occupation class has a significant effect on the amount of disability income coverage available, the availability of favorable provisions and the premium charged

Although occupation classification may differ from insurer to insurer, occupations are generally divided into five or six categories that differ principally in their manual work content

Financial underwriting for disability insurance is concerned primarily with ensuring that the disability income insured has sufficient financial motivation to seek to return to work following a period of disability

Medical underwriting focuses on the proposed insured's health history and the likelihood that it will increase morbidity

Underwriting the impaired risk is generally accomplished through three approaches: rejection, increased premiums and/or exclusions and limitations




Occupational Classification
Financial Underwriting
Medical Underwriting
Chapter 4 Review