Computerized medical underwriting of group life insurance...

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Insurance

Reexamination Certificate

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C705S002000, C705S003000, C600S300000, C600S301000

Reexamination Certificate

active

07555439

ABSTRACT:
A method of underwriting group life insurance for a policy period includes collecting medical claims data for the group to be underwritten, where each medical claim being related to a particular employee of the group. Morbidity categories are provided that categorize the medical claims in the medical claims data. A conditional probability model is developed and applied to the morbidity categories for each employee in the group using his medical claims, thereby calculating the expected conditional probability for each employee dying during the policy period. For each employee, an estimate of the expected life claim cost is estimated using an index of the life coverage to salary. Combining the expected conditional probability for each employee dying during the policy period with the estimate of the expected claim cost of death gives an estimate of the group's total life exposure.

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