New York Regulators Roll Eyes at ‘Proprietary’ Accelerated Life Underwriting
January 29, 2019 by Allison Bell
The New York State Department of Financial Services wants life insurers to prove that the new accelerated underwriting programs they’re using are reasonable, fair and transparent.
The department has sent all life insurers authorized to write coverage in the state a letter warning them about their responsibility to vet any “external consumer data and information sources,” or services, they use when looking at applicants for coverage.
Officials give their thinking on the matter in Insurance Circular Letter Number 1 (2019), which has the title, “Use of External Consumer Data and Information Sources in Underwriting for Life Insurance.”
The Words
“External consumer data” refers generally to information provided by independent database managers, rather than by the applicants themselves.
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