What is the main task of a field underwriter?
1) Classify risks to the insured
2) Provide medical information to the Medical Information Bureau (MIB)
3) Ensure an applicant’s medical information is accurate and complete
4) Approve or decline an applicant
The Correct Answer and Explanation is:
The correct answer is 3) Ensure an applicant’s medical information is accurate and complete.
Explanation:
A field underwriter plays a critical role in the life insurance application process by gathering and evaluating information about the applicant to assess the risk of insuring them. Their primary responsibility is to ensure that the information provided by the applicant, particularly regarding medical history and lifestyle, is accurate and complete. This step is crucial because accurate medical information helps the insurance company determine the appropriate premiums for the applicant and evaluate whether to accept or decline the application.
Field underwriters typically interact directly with applicants, conducting interviews, collecting medical records, and requesting additional documentation if needed. They may also schedule medical examinations (such as blood tests or physical exams) to verify the applicant’s health status. The goal is to reduce the risk of misrepresentation or omission, which could affect the policy’s validity or lead to potential claims disputes later.
Now, let’s briefly analyze the other options:
1) Classify risks to the insured – This is generally the role of the underwriting department, which evaluates the risk level of applicants based on their health information, lifestyle, and other factors. Field underwriters gather the data but do not usually make decisions about the classification of risk.
2) Provide medical information to the Medical Information Bureau (MIB) – Field underwriters do not typically provide information to the MIB. The MIB is a database that collects information on individuals’ health history, and it is primarily used by insurers to detect inconsistencies in applicants’ health records.
4) Approve or decline an applicant – This decision is made by the underwriting department after reviewing the full application and supporting information. The field underwriter’s role is to ensure that the data they collect is accurate and comprehensive, but the final decision to approve or decline an applicant rests with the underwriter.
Therefore, the main task of a field underwriter is to ensure that the applicant’s medical information is accurate and complete, which helps the insurance company assess the risk accurately and make informed decisions.