Question

Can an underwriter decline a proposal from an applicant with an incurable disease?

a.

Yes, they can always decline the proposal.

b.

No, they must always accept the proposal.

c.

It depends on the severity of the disease.

d.

It depends on the applicant's age and occupation.

Posted under IC22 Life Insurance Underwriting

Answer: (a).Yes, they can always decline the proposal. Explanation:Underwriters can decline proposals from individuals who are suffering from some incurable diseases or conditions, as postponement of risk or charging of extra premium will not help manage the extra risks.

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Q. Can an underwriter decline a proposal from an applicant with an incurable disease?
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