In order to place an applicant for insurance into the proper risk classification, an insurance company needs reliable information about every factor that might significantly affect an applicant�s longevity. As a matter of practice, companies seek applicant information about the following:

The applicant�s age is the most important single factor on individual mortality expectations. Except for the first few years of life, resistance to disease and injury weakens with the passage of time, and the probability of death increases with age. Age is such a significant measure of the likelihood of death that it is the point of departure in classifying applicants for insurance. Each applicant is placed within the proper age classification and is then compared to the norm for that age to determine insurability.

One might assume that such a vital underwriting factor as age would be subject to verification at the time submitted. Ideally, verification of age is desirable in all cases, but practical considerations mitigate against it. To require proof of age at the time of application would inevitably delay the policy�s issue and would be a source of irritation to the applicant. The agency force would object to the requirement, since many applicants would be unable or unwilling to submit documentary proof of their dates of birth. Therefore it is customary to accept the life insurance applicant�s statement of age unless there is reason to believe that it is a misstatement.

Neither is it customary to require documentation of age at the time of a claim settlement unless the company has reason to question the accuracy of the stated date of birth. A typical circumstance in which a company would require verification of age would be if there are conflicting dates of birth on two or more documents. If a misstatement is discovered after the policy has become a claim, the amount of the proceeds is adjusted in accordance with the misstatement-of-age clause.

The situation is different with an immediate annuity. Under such a contract the relationship between the annuitant�s age and the amount of the periodic payments is so direct and immediate that proof of age is required at the time the annuity is purchased.

The age of the applicant enters into a company�s underwriting considerations in another respect. For reasons that will be explained later in this chapter, all companies have upper age limits beyond which they will not write insurance on any basis and somewhat lower limits for writing certain types of policies, such as term insurance. The absolute limit may be as low as 60 or as high as 75 or more. Under such circumstances, the age of the applicant may bar acceptability to the company on any basis. In other words, age alone�regardless of the other facts of the case�may render a person uninsurable. For that reason, a misstatement of age that induces a company to issue a policy it would not otherwise issue is grounds for rescission if discovered by the company during the contestable period. Companies also have special underwriting rules for children and seniors, under which age may be an absolute determinant of insurability.

The applicant�s build�the relationship between height, weight, and girth�is one of the basic determinants of mortality expectation. This was one of the first discoveries in the area of medical selection. The earliest attempts to arrive at the ideal relationship between height and weight were rather crude, some drawing their inspiration from the physical proportions of certain ancient Greek athletes as revealed by statues dating back to the third century BC. Two statues in particular were considered to represent ideal proportions: The Gladiator and Bronze Tumbler.

The first comprehensive statistical study of the relationship between build and mortality covered the experience on policies issued by prominent life insurance companies from 1885 through 1908 and was published in 1913 as the MedicoActuarial Mortality Investigation. The findings of this study, as refined and supplemented by subsequent investigations, served as the basis for the build tables used by life insurance companies in this country for the next several decades. These tables were eventually supplanted by the Build and Blood Pressure Study 1959, derived from findings of an investigation by the Society of Actuaries, which encompassed the ordinary policy issues of 26 leading companies from 1935 through 1953. These tables remained in use until 1980 when most companies adopted tables based on the Build Study 1979 (see table 21-1).

Compared to the 1959 tables, the 1980 tables raised the ranges of acceptable weight for shorter men and women. The lower portion of the table shows various combinations of height and weight, along with the average weight for each height. The upper portion of the table shows the mortality debits associated with each combination of height and weight in intervals of 25 points. As a group, people can be expected to experience mortality 25 percent higher than normal if they fall within the first overweight column. Thus an applicant in that classification would be assigned a debit of 25 points for purposes of the numerical rating system described in chapter 22. Build becomes a neutral factor when the weight is average or only slightly underweight or overweight. Beyond the average classification, debits are assessed, and the maximum debit for the age category in table 21-1 is 300 points. There is a special juvenile build table for people under 15. (There are also other build tables in common use that differ in both format and substance from the one presented here.)

With overweight male applicants, the company is also interested in the distribution of the excess weight. This involves a comparison of the chest (expanded) with the abdominal girth. Among well-built men of average height, the chest measurement (expanded) normally exceeds the abdominal measurement by two inches; this relationship is likely to be reversed among overweight persons. Insurance companies have prepared charts that assign debits for abdominal measurements in excess of chest measurements. The number of points depends on the person�s age, the percentage he is overweight, and the number of inches by which the one measurement exceeds the other. Credits, derived the same way, are assigned when chest measurements are in excess of the abdominal girth. Under the numerical rating system, it is possible for an applicant to be credited with 20 points for a favorable relationship between his chest and girth or debited 70 points for an unfavorable one. Taking chest and abdominal measurements also enables a company to check on the accuracy of reported weights.

Next in general importance is the applicant�s physical condition. In the short run, this factor may outweigh all others in importance. In evaluating an application for insurance, the company wishes to know whether there are any impairments of body or mind that would tend to shorten the life expectancy of the applicant. Questions designed to elicit information on the applicant�s physical status are included in the application. If a sizable amount of insurance is involved, the information is also confirmed and supplemented by a medical examination and laboratory testing. The primary purpose of the medical examination is to detect any malfunctioning of vital organs. The heart and other parts of the circulatory system are subjected to special scrutiny.

Impairment of the heart may be evidenced by subjective symptoms�shortness of breath or pain in the chest�or by objective symptoms�changes in the quality of the heart sounds, murmurs, enlargement of the heart, persistently rapid or slow pulse, irregular pulse, poor reaction to exercise, abnormal blood pressure, or abnormalities revealed by X-ray and electrocardiogram.

One of the most common manifestations of heart impairment is murmurs. A murmur is any sound other than those associated with the normal closing of the heart valves. Functional murmurs are considered harmless and are consequently of no significance to the underwriter; organic murmurs indicate damage to some part of the heart tissue. The problem is distinguishing between the two. Organic murmurs are regarded as serious and may cause the applicant to be rated highly or declined altogether. True functional murmurs are not rated, but if there is any doubt about their cause or origin, provision may be made for some extra mortality.

Enlargement of the heart (cardiomegaly) is a condition of underwriting significance, since it is nature�s way of compensating for damage to the valves or other sections of the heart mechanism. Before 1979, extra mortality of 50 to 100

percent had been anticipated from an enlarged heart, without any other evidence of disease. The fallacy of that rule was demonstrated by the Blood Pressure Study 1979, which is the basis for blood pressure underwriting by most companies. This study covered about 4.35 million policies issued from 1950 through 1971 that were traced from 1954 policy anniversaries to 1972 policy anniversaries.

The findings of the study indicated lower extra mortality associated with hypertension than did the study published 20 years earlier. Specifically, among men with borderline blood pressures, regardless of treatment, the mortality ratios in the Blood Pressure Study 1979 were about 20 percentage points lower than in the Build and Blood Pressure Study 1959. The corresponding mortality ratios for high blood pressures were from 30 to 50 percentage points lower than in the earlier study. Among women with borderline hypertension, regardless of treatment, the mortality ratios were generally not much different from those in the 1959 study, but the corresponding mortality ratios for the upper range of high blood pressure were more than 50 percentage points lower than in the earlier study. This is believed to reflect the effects of antihypertensive treatment after issue of insurance.

High blood pressure may be a symptom of a condition that impairs longevity. It is particularly associated with kidney ailments. A combination of overweight and hypertension is always regarded seriously. Low blood pressure can usually be disregarded unless it is abnormally low or associated with some definite impairment, such as tuberculosis or congestive heart failure. High blood pressure that responds to treatment by returning to normal levels may receive favorable underwriting consideration, provided normal blood pressure levels are maintained for a reasonable period (one to two years).

The systolic pressure is more susceptible to emotion than the diastolic, so diastolic pressure is considered to be a better measure of the constant strain on the heart. (Systolic pressure is the higher pressure created by heart contractions, and the lower diastolic pressure is the residual reading created by blood in the body without the added pressure of a heart contraction.) Insurance experience indicates that both should be taken into consideration, and if both are higher than normal, the mortality rate will be greater than if only one of the two is out of line. For people at advanced ages, however, the systolic reading assumes more significance.

The condition of the circulatory system can also be evaluated by the pulse rate, normally 60 to 80 beats per minute. A rapid pulse is unfavorable, since it indicates that the heart has to work harder than usual to meet the body�s needs. This may be a sign of an inefficient or impaired heart, an infection, or any other abnormal condition within the body that demands an extra supply of blood. An occasional rapid pulse can be overlooked for underwriting purposes, but a pulse rate that is persistently over 90 is regarded as significant. A rate persistently between 90 and 100 indicates mortality about 50 percent above normal, while a rate between 100 and 110 results in almost 200 percent above normal mortality. In general, a slow pulse is a sign of an efficient heart and is viewed as a favorable sign. An irregular pulse, or one that is slow to return to normal after exercise, is regarded unfavorably.

Blood profile tests have gained added importance with the discovery of Acquired Immune Deficiency Syndrome (AIDS). The bleak outlook for those infected with the Human Immunosuppressive Virus (HIV) has mandated extensive random testing of insurance applicants. In turn this nearly universal blood testing has provided insurers with additional useful information regarding applicants� renal and liver function and blood lipids (fats, oils and waxes). The availability of this additional information has facilitated the proliferation of products offering preferred premium classifications.

A standard feature of all medical examinations is the urinalysis. This important diagnostic procedure has a three-fold purpose: (1) to measure the functional capacity of the kidneys, (2) to detect infections or other abnormal conditions of the kidneys, and (3) to discover impairments of other vital organs of the body. The ability of the kidneys to concentrate liquids is revealed by the amount of water in the urine, which is measured by the specific gravity test. Other tests, not a part of the standard urinalysis, measure the ability of the kidneys to excrete. The urine is examined chemically and microscopically for the presence of albumin, pus, casts, or red blood cells, which would indicate a diseased condition of the kidneys.

The presence of an undue amount of sugar in the urine suggests the possibility of diabetes, a condition characterized by an inability to metabolize carbohydrates and caused by a deficiency of insulin. The urinalysis may also reveal abnormalities of the bladder, prostate, and other sections of the urinary tract. A kidney condition revealed by an urinalysis may point to a circulatory ailment, such as heart disease or arteriosclerosis, since there is ample evidence that a close relationship exists between kidney and circulatory impairments. The urinalysis is also used to screen for the use of illicit drugs such as cocaine and marijuana. Urine testing for the presence of antibodies to HIV is also available. In addition to the foregoing tests, the medical examiner carefully checks the other organs of the body for evidence of disease or functional disturbance, giving special attention to any factor or condition that might be related to any previous impairment disclosed by the applicant�s medical history.

The applicant�s personal history sheds important light on his or her acceptability to the company. Consequently the person to be insured is asked to provide details about his or her health record, past habits, previous environment, and insurance status on the application for insurance.

The applicant�s health record is usually the most important of the personal history factors. Complete information about previous illnesses, injuries, and operations may indicate the necessity for special additional tests or examinations. Particular emphasis is placed on recent illnesses and operations, and it is customary for the company to contact the attending physician or physicians for the medical details that normally would not be known to the applicant and might have a bearing upon insurability. The medical examination findings need to be supplemented by the subjective feelings and symptoms of the applicant. It is not the practice to consider an application from any person who is scheduled for diagnostic testing or surgery, currently under treatment for any condition, or not fully recovered from any illness.

The company also wants to know whether the applicant has ever been addicted to the use of drugs or alcohol, since there is always a possibility that the "cure" will prove to be only temporary. The past abuse may have caused irrevocable damage to one or more body systems. The personal history may reveal that the applicant has only recently left a hazardous or unhealthful occupation, raising the possibility that he or she may retain ill effects from the job or might return to the job in the future. It may also disclose that the applicant has changed residence to improve his or her health or has had intimate association with a person who has a contagious disease such as tuberculosis.

Finally, the company wants to know whether the applicant has ever been refused insurance by any other company or offered insurance on rated terms. An affirmative answer would indicate a prior impairment that might still be present. Information as to existing insurance also enables the company to judge whether the amount of insurance, existing and proposed, bears a reasonable relationship to the applicant�s needs and financial resources.

Family history is considered significant because certain characteristics are hereditary. Build follows family lines, and to some extent, so do structural qualities of the heart and other organs. A greater than average susceptibility to infectious diseases may also be inherited. Hence the applicant is asked to provide information about the ages and state of health of parents and brothers and sisters if they are living, or if deceased, their ages at death and the causes of death.

Long-lived parents and siblings at one time were looked at as assuring a long life for an applicant, even though he or she was somewhat overweight or had some other impairment that would normally have been placed in the category of borderline risks. On the other hand, an applicant from a short-lived family, unless the deaths resulted from accidents, had to be better than average in other respects in order to be insured at standard rates. Except for cardiovascular-renal diseases and to a lesser (and declining) degree, tuberculosis, considerably less emphasis is now placed on family history with the exception of preferred-risk programs. This is because of the unreliability of family history details recited by the applicant and the difficulty of tracing the influence of heredity.

There is a tendency, which can be demonstrated statistically, for the applicant to exaggerate the ages of family members when they died. Unless his or her parents and siblings are dead or dying, the applicant generally reports them to be in good health; instances of hypertension, diabetes, and other impairments that would be regarded as significant by the home office underwriters are usually not disclosed. Furthermore it is not feasible to follow up on the applicant�s family record. Even if the facts were accurately reported, there would still be insufficient evidence to measure the true impact of heredity on longevity. Only data concerning parents and siblings are usually required, whereas hereditary influences may extend back to grandparents and great-grandparents. Moreover, the influence of heredity may not have an impact until an individual is aged 60 or older, which is too late to be useful in evaluating the application of a younger person whose family record is relatively immature.

Despite the foregoing inadequacies, it has been determined that if a group of applicants�all free of any known personal qualities that would adversely affect their longevity�is divided into classes on the basis of their family histories as revealed in their applications, the lowest mortality will be found in the class with the most favorable record, and the highest mortality will be found in the class with the poorest record. The best group shows a mortality of about 85 percent of the average for all classes, while the poorest group reflects a mortality of about 115 percent. Therefore companies usually give a credit of 15 points for a very good family history and a debit of 15 points for a very poor history.

There are many occupations that are known to have an adverse effect on mortality, and insurance companies must impose an extra charge on applicants engaged in such occupations. The higher mortality rate associated with these occupations may be attributable to a greater than normal accident hazard, unhealthful working conditions, or "socio-economic" hazards (see below).

Accidents, if not the most common hazard, are probably the most obvious. All people working with machinery are exposed to some accident hazard. Construction workers are exposed to the hazard of falling. Underground miners�in addition to the hazard of machinery� run the risk of explosions, rock falls, fire, and lung disease. Some electrical workers are exposed to high voltages and some to the danger of falling from high places. Laborers handling heavy materials run the risk of having the materials fall on them. Railroad workers, particularly those around heavy rolling equipment, are subject to a high accident rate. Other groups subject to a higher than normal accident rate include fishermen, lumbermen, and farmers.

Many health hazards arise from the processes associated with a complex industrial civilization, but some of the more important were known to early civilizations. Dust is probably the most serious health hazard. It arises out of such industrial processes as grinding, drilling, and crushing, and is associated particularly with the mining industry. Organic dusts, which are largely derived from substances of animal and plant origin and are identified especially with the textile industry, produce irritation of the upper air passages and may lead to tuberculosis and other respiratory infections. Inorganic dusts, which are primarily metallic and mineral, will give rise to silicosis if they contain free silica and, in any event, increase the possibility of diseases of the respiratory organs. The lasting effects of exposure to dust make previous employment in the dusty trades an important underwriting factor. Asbestos exposure has also proven to be a serious health hazard.

The hazard from poisons exists in many industries, the number of which has been considerably increased by the expanding use of chemicals in industry. Lead poisoning�largely identified with the mining and smelting of lead but also found in printing, painting, file-cutting, and other processes�is one of the major hazards. Other health hazards include abnormalities of temperature, dampness, defective illumination, infections, radiant energy, and repeated motion, pressure, or electrical shock.

The socio-economic hazard is associated with occupations that employ unskilled and semi-skilled labor and pay commensurately low wages. The extra mortality that occurs among such people is attributable primarily to their unsatisfactory living and working conditions and to inadequate medical care. Their low economic status may reflect substandard physical or mental capacity.

There are some occupations that are thought to have a socio-economic hazard not because of low wages but because of the environment in which the people work. Bartenders, liquor salespeople, and cab drivers, for example, are believed to represent a hazard purely because of environment.

All insurance companies have occupational manuals in which they list the occupations that are deemed to have adverse effects on mortality. An applicant employed in one of the listed occupations will be required to pay an additional premium, even though all other factors are favorable. Previous employment in such an occupation may be the basis for an additional premium if there is reason to suspect that the applicant may return to the occupation. Because of greater emphasis on industrial safety and public health measures, the number of such occupations is declining steadily.

If an applicant is placed in a substandard classification because of an unfavorable current occupation, the rating is usually removed and the premium reduced upon a subsequent change to an unrated occupation. The company cannot, of course, increase the premium if a policyowner changes from an unrated to a rated occupation after the policy has been issued, and it is not customary for such differences to be recognized for underwriting purposes.

The applicant�s residence�present or prospective�is important, since mortality rates vary throughout different geographical regions of the United States and throughout the world. If the applicant is contemplating foreign travel or residence, the insurance company wants to know about it. It also wants to know whether the applicant has recently traveled or resided in a foreign country, particularly in the tropics. Differences among countries as to climate, living standards, sanitary conditions, medical care, political stability, and terrorist risk can be expected to have a decided effect on mortality.

Generally speaking, policies are not issued by United States companies to applicants whose permanent residence is in a foreign country, even though that country may have a climate and living conditions similar to those of the United States. Unless an insurance company has an organization and representatives in another country, it may not be able to get full information about applicants, and practical difficulties may arise in settling claims. Policies are freely issued to persons who plan to be abroad temporarily, provided they do not contemplate visiting crisis areas or making an extended stay in tropical countries. A small but growing number of American and Canadian companies do business in foreign countries and use special premium rates to account for the different mortality rates.

The term habits, for underwriting purposes, refers to the use of alcohol and drugs. The company is concerned about an applicant�s habitual use of alcohol because of the impairment of judgment and reactions during intoxication; it is concerned about the use of drugs because of the effect on the applicant�s health and behavior. Of course, prolonged immoderate use of alcohol may also be harmful to a person�s health.

An insurance company is not concerned about a prospective insured who uses alcoholic beverages in moderate amounts on social occasions. It is concerned about the applicant who drinks to the point of intoxication. All investigations of the effect of drinking on longevity indicate that there is substantial mortality increase among heavy drinkers. Successful completion of an in-house alcohol treatment program, combined with several years of total abstinence, will render prior abusers insurable on some basis with most life insurers. There is still a substantial relapse rate among abusers, however.

A person who is known to be a drug addict cannot obtain insurance on any basis. Even after treatment, a former drug user may be considered uninsurable for as long a period as 5 years and at best will be rated heavily for a long period of years because of the possibility of resuming the habit. For example, a former drug addict may be rated up to 200 percent of standard mortality for the first 5 or 10 years after taking the cure; a rating of 150 percent thereafter is not unusual.

It is surprising to many people that an insurance company would concern itself with an applicant�s morals. It seems like an unnecessary intrusion into the applicant�s personal life. Actually, the company is interested in the moral fiber of the applicant, not because it wants to sit in judgment, but because it has been clearly established that departures from the commonly accepted standards of ethical and moral conduct involve extra mortality risks.

Marital infidelity and other kinds of behavior that are considered immoral are regarded seriously, partly because they are frequently found in combination with other types of risky behavior, such as overindulgence in alcoholic beverages, gambling, and the use of drugs. The hazards to longevity are the impairment of health and the possibility of violence.

Unethical business conduct is another form of moral hazard. Companies do not care to insure persons who have a record of numerous bankruptcies, operate businesses that are just within the law, or have a general reputation for dishonesty. The companies fear the applicant�s misrepresentation and concealment of material underwriting facts on the application. A person who is dishonest in general business dealings is not likely to make an exception for insurance companies, which have always been prime targets for unscrupulous schemes.

The superior longevity of women is the basis for offering women life insurance coverage at lower premiums. It is also the basis for higher annuity premiums and lower benefits under life-income options for women. Under the 1980 CSO mortality table�sex distinct�males face a higher probability of dying during the late teens and early twenties than between ages 28 and 30. Females do not yet show elevated rates for the early adult years. Suicide, drug overdose, AIDS, and auto accidents are rising causes of death among young men and women.

The plan of insurance is taken into account because policies differ not only as to the amount at risk but also as to mortality rates. All other things being equal, the smaller the amount at risk, the more liberal the underwriting standards of the company. Thus companies tend to be somewhat more liberal in underwriting single premium and limited payment policies, particularly when the extra mortality from a known impairment is not expected to be felt until middle or later life.

The higher initial premium discourages antiselection in connection with single premium and limited payment policies. The amount of antiselection is believed to be particularly great in connection with term insurance. The plan of insurance can be especially important in the consideration of substandard risks.

In the eyes of the law every person has an unlimited insurable interest in his or her own life. Thus the burden of preventing overinsurance is placed on the insurance company. The company carefully investigates the applicant�s financial status in order to make sure that family and business circumstances justify the amount of insurance applied for and carried in all companies. This investigation also reveals whether the amount of insurance applied for bears a reasonable relationship to the applicant�s income. The company is interested not only in preventing too much insurance on the life of the applicant but also in keeping the insurance in force once issued.

In the early days of aviation, any form of flying was considered to be so hazardous�and rare�that the risk was either excluded altogether (through an exclusion clause) or made subject to a substantial extra premium. As technical developments and improvements in pilot skills reduced the hazards of flying, underwriting restrictions were gradually relaxed. Today, the risk has been reduced to such a low level and air travel has become so common that companies do not consider it necessary to impose any underwriting restrictions on passenger travel on any type of nonmilitary aircraft, whether it is a commercial airliner, a company plane, or a personal aircraft. Furthermore, no occupational rating or restriction is applied to crew members on regularly scheduled commercial aircraft.

The treatment of private pilots depends on the person�s age, experience, training, and amount of flying. For example, most companies will treat as a standard risk an applicant between the ages of 27 and 60 who has at least 100 hours of pilot experience and does not fly more than 200 hours per year. A person who flies between 200 and 400 hours annually might be charged an extra premium of $3 per $1,000; flying in excess of 1,400 hours per year might involve an extra premium of $5 per $1,000. An applicant under age 27 who is otherwise qualified as a standard risk might be charged an extra premium of $5 per $1,000. Credits are commonly allowed for advanced training, such as attaining the Instrument Flight Rated (IFR) designation. The underwriting treatment of a crew member of a military aircraft depends on the applicant�s age and type of duty. Service with combat aircraft is regarded the least favorably, as one would naturally suppose. Accidental death benefit riders often exclude aviation deaths if the insured was the pilot or crew member of any type of aircraft.

When there is an indication that the applicant will be involved in any aeronautical activity that might present a special hazard, the applicant is usually required to complete a supplementary form that gives the company full details of past, present, and probable future aviation activities.

In recent years there has been a proliferation of flying in ultralight aircraft, for example, which are not nearly as regulated as regular aircraft. Based on mortality experience to date, this activity requires ratings in the range of $5 or more per $1,000.

In the absence of a specific restriction, all basic policies cover the aviation hazard in full. In other words, there is no presumption that the hazard is not covered or is subject to a limitation of liability. It is only when the company is put on notice, usually through the applicant�s own disclosure, that an unusual aviation hazard exists that it takes any special underwriting action.

Certain avocations are sufficiently hazardous to justify an extra premium, at least under given circumstances. Among the avocations that may entail an extra premium are automobile, motorcycle, scooter, and speedboat racing; sky diving, skin diving (to depths over 50 feet); and mountain climbing. Most of these avocations involve a flat extra premium of $3.50 to $10.00 per $1,000. An extra premium of $3.00 (or more) per $1,000 is required for hang gliding.

For more than 100 years�at least as far back as the Civil War�American life insurance companies have taken special underwriting cognizance of the extra mortality risk associated with applicants engaged in or facing military service during a period of armed conflict. The underwriting action has taken three principal forms: outright rejection of the applicant, limitation on the face amount of insurance issued, or the attachment of a so-called war clause that limits the insurer�s obligation to return of premiums, less dividends, with interest, if the insured dies under circumstances as defined in the war clause.

The use of a war clause has been the most common method of dealing with the extra hazard of military or naval service. Some companies have also used a "status" clause, which limits the insurer�s obligation to return of premium if the insured should die while in military service outside the territorial boundaries of the United States, whether or not the cause of death can be attributed to military service. Other companies have used a rider, referred to as a "results" war clause, which limits the insurer�s obligation only if the insured�s death is the result of military service. While regarded as more liberal to the insured than the status clause, this provision limits liability even though the insured is no longer in a war zone at the time of death. Most companies have been willing to waive these clauses for an appropriate extra premium.

War clauses were widely if not universally used during both World Wars (especially World War II) in policies that were issued to persons of military age. After the cessation of hostilities, the clauses were generally revoked by the insurance companies without request from the insureds. During the Korean conflict, war clauses were again inserted in policies that were issued to young men facing military service. With the termination of hostilities, use of the clauses was again discontinued, and such clauses in outstanding policies were voluntarily cancelled by the companies.

With the American involvement in Vietnam, life insurance companies were again confronted with the problem of assessing the risk in military service. There was no consensus among the companies as to the best approach to the problem, and a variety of practices were followed. One approach used by a number of companies was to refuse to write any coverage on military personnel at the lower ranks but to issue insurance in normal amounts to all other military persons, attaching a "results" type of war clause to policies written. Generally applications were not accepted on persons in combat units or on orders to combat zones.

The American-led action to expel the Iraqi military presence from Kuwait triggered the most recent challenge to the industry�s risk classification practices. Once again, with the exception of the general demise of the war exclusion clause, company practices were characterized by a lack of uniformity. During the military buildup, while some companies continued to issue unrestricted insurance, others sought to withdraw from the sale of insurance to military personnel in or under orders to report to the Persian Gulf. These companies cited their long-standing philosophies of not insuring any applicant (civilian or military) residing in or traveling to areas of political instability. Others simply defended their practice based on the extra risk of military duty in the Persian Gulf. However, what differentiated the Persian Gulf conflict in terms of its impact on insurer practices was the significant role of political pressure. Faced with the avowed threat by a number of state insurance department commissioners to label companies as unpatriotic in press conferences and to suspend their licenses for discriminatory practices (even companies described above who maintained nondiscriminatory restrictions on military or civilian applicants in areas of political instability), companies generally provided such coverage with normal restrictions on insurance face amounts.