Numerical System of Rating

Extract

In considering the question as to whether an assurance can be granted to a particular proposer, the Chief Medical Officer and the Actuary of the Company have available the Medical and other reports of the life proposed. From the information given in those reports they have to form an opinion as to the present state of health and likelihood of longevity, taking into account all the factors before them. In some cases it does not require a doctor nor yet an actuary to decide that the policy can be issued at ordinary rates, but in other cases there will be some degree of impairment, varying from the case where a spin of the coin might be as fair a method as any, to the case which is obviously uninsurable at any rate. It is the border line cases which cause the most inconvenience. A certain proposer is slightly overweight, so we do not like the look of him, but this may be counterbalanced by favourable chest and abdominal measurements. Then, again, there may be a lack of longevity in the family history, but on the other hand he may only require a short term endowment assurance.