The Life Underwriting Guide - Pilot Insurance Center

MANAGING YOUR CASES (continued)
• You keep communications open with your respective underwriter to include the:
• Progress of the case
• Questions posed by the underwriter should be answered promptly and accurately
• Explanation by a cover letter for medical and/or financial factors, or any unusual designation or request (special policy
dating) that may not be apparent to the underwriter; or if a previous underwriting discussion is involved, if there is
competition from another source or there is an unusual beneficiary or ownership designation
• Request for the underwriter to contact you with the classification decision, prior to issue, when the case is considered as
competition with another insurance carrier
• You complete the ownership and beneficiary designations (all requested information) and include the Trust Certification form
when owner is a trust. Note: Trust must be dated prior to application.
Acceptable Beneficiary Designations: A primary objective in the underwriting process is the determination that the coverage
being applied for is in the best interest of the proposed insured. On initial review of the application, the beneficiary designation
should clearly reflect the purpose of the coverage and that there is an insurable interest. The beneficiary's insurable interest is
defined as having a real interest in the continued life of the proposed insured. This can be engendered by “love and affection” or
a “lawful and substantial economic interest.”
The following beneficiaries may generally be assumed to have an insurable interest in the life of the proposed insured:
� Immediate family members: spouse, children, parents, domestic partner (if partnership is not legally recognized in the policy
state, we may need to ask a few questions to document the relationship), grandparents, and grandchildren.
� Business partners, employers if the insured person is a director, officer or high level employee.
� Charitable organizations - if the proposed insured has a history of giving to the named charity and already has sufficient
personal needs insurance in force.
If a beneficiary is other than those listed above is named, we may seek answers to the following questions:
• Why was the beneficiary named? What was the purpose for the coverage?
• Will the beneficiary suffer a financial loss in the event of death of the proposed insured?
It is generally appropriate to collect an advance premium (at least one month’s premium) at the time of application if the proposed
insured has never been declined for insurance. This will invoke the terms of the Temporary Insurance Agreement described in the
application.
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