• This section has up to now concentrated on the "pure risk" of an individual dying at a given age. Although this allows you to calculate a premium it does not take account of the "real risk" which emanates from their state of health.

  • The underwriter's job is underwriter's job is to analyse medical evidence relating to the individual(s) applying to be insured. This evidence will include both the medical history and present condition of the person(s) who are to be insured.

  • The information is obtained by asking the individual questions by the means of the application form, and if necessary writing to the individual's GP. The latter is covered by legislation, which allows the individual to see a copy of the report completed by his doctor. This legislation "Access to Medical Records Act 1988", allows for copies but does not set a maximum cost for the provision.

  • The underwrite relies heavily on the truthfulness of the answers given by the applicant; the answers given must be true to the best knowledge and belief of the applicant.

  • This process of analysis is often known as selection, indeed an untruthful applicant is often said to be selecting against the office.

  • The key difference between the life underwriter and the general insurance underwriter is that the latter has the ability not to invite renewal, but the life underwriter has to make a decision which will remain for the term of the plan be that 1 or 25 years.