Financial & Medical Underwriting Requirements


What you need to know about Lloyd’s Underwriting



Due to the limited coverage terms available and the policy wording and pricing of Lloyd’s coverage, they are generally able to underwrite much more leniently than traditional insurers.


Unlike traditional coverage, we try to obtain as much detail before providing an illustration so to minimize the chances that the coverage offered or the premium will be different than what's illustrated. While this may make the initial stages of obtaining an illustration more tedious this usually clears the way for more seamless underwriting.


Specific medical and financial requirements are usually included on all illustrations, and confirmed once an application has been submitted. 


Medical and Financial Underwriting Requirements


Medical requirements will usually depend on a number of factors, including age, sums insured, premium, and declared medical history. All requirements are specified on all illustrations however they may change depending on any new information that is disclosed on the application. Financial Underwriting Requirements usually follow the same criteria established by traditional disability carriers.


The amount of coverage available for key person insurance will be dependent upon the financial risk associated with the reason for buying the protection. Typical reasons for buying key person insurance include: key employee insurance, business loan indemnification, funding buy-sell agreements and executive benefits.  In each of these cases, the financial justification requirements are different. The general guidelines for each are described below:


 1. Key Person Insurance

2. Business Loan/Lease Disability Coverage

 3. Funding Buy-Sell Agreements

 4. Executive Benefits

Regardless of how much insurance is applied for or requested by the business, underwriters will approve a key man policy based on their interpretation of the true risk exposure. Providing the detailed financial information above allows underwriters to accurately assess the facts and make the best insurance offer.