Application

The application form provides details such as residence, occupation, beneficiary, and reason for taking out the policy. Some forms also contain financial questions including details of existing cover and income.

The application is a key component in every risk assessment. The quality and clarity of questions, layout, and design of the form is important.

Financial questionnaire

Financial questionnaires are essential for making an assessment. The questionnaire must be signed by the policy holder. Different types of insurable interest require specific questions.

Suggestions for questionnaires can be found here.

Third party information

Third party information can provide an independent check of the validity of the information provided by a client.

Examples include:

• Income tax return
• Salary slip / Pay slip
• Reports (inquiry agency reports, background reports)
• Financial statement confirmed by an independent third party
• Loan agreement / Investment agreement
• Balance sheet

Other sources

There are many sources of additional background information available which can be of use when evaluating a financial situation.

Some examples of such sources are:

• Internet research
• Newspapers
• Financial journals
• Net worth rankings by media outlets
• Business websites

Please note: These sources may help get a good overview of the risk to be insured. However, they are not always complete, meaningful, reliable, or confirmed by a third party. Also, there may be regulatory boundaries as to what may be used in the underwriting process. Therefore, careful consideration is strongly advised before using any of these sources for underwriting purposes.