How Does Life Insurance Underwriting Work? 
A life insurance underwriter is someone who evaluates the risk of issuing a policy based on many factors , of which the main one is life expectancy . The person making this evaluation used to write their name under the definition of the risk , thus came the title , `` underwriter '' . It is a very difficult job as life insurance carriers have many regulations to follow , they must charge wisely so their company stays solvent , and they must know a realm of health information in addition to being astute financially . Therefore , there are often underwriting teams , including medical doctors , when a life insurance company covers a broad range of risk . Not only do underwriters look at medical risk , but since 9-11 they also must be sure that the face amount applied for fits the financial means of the applicant , because life insurance can be used by terrorists for money laundering . They look at pharmacy records , driving records , and MIB -LRB- Medical Information Bureau -RRB- . Some policies do not require any exam or medical records , some skip the exam but still have the option to order medical records , some just order exam and rarely order medical records , and some routinely order both . All these steps together ensure that the proper rating is given and that the life insurance company will be able to pay all out all its claims . 