Real-Life Decision Making
Working as an underwriter requires a lot of judgment and decision-making skills.
"In many cases, you are the one who gives the final OK on a policy," says Neil Facteau, a senior underwriting consultant.
The underwriter has to look at the information supplied by the client on the application and then decide what kind of insurance risk that person poses.
You're processing an application for life insurance. The client is a 65-year-old male of normal weight with no health problems. He's also a non-smoker. He has applied for $750,000 in coverage -- a hefty sum.
The agent has asked you to process the policy as soon as possible. The agent assures you that this man is a good customer and urges you to give him the standard rate. You would like to look into this application, but time is money.
"If you order requirement after requirement for every case, it's going to be too costly for the company," says Facteau. "You have to be prepared to make decisions with as little information as you can."
You are legally entitled to request a confidential report from the client's physician, but you don't like to do this as a rule. Besides, the longer you take to approve, the longer the agent has to wait for his commission and that's his livelihood.
Based on the policy, everything looks OK. What do you do?