6th April 2020

AIG: Individual Protection - Coronavirus Q&As

Coronavirus Q&As

Are you accepting new applications for insurance?

Yes, AIG Life remains open for business and we continue to help meet the needs of customers with both in-force and new business. A customer can apply for income protection, critical illness or life insurance in the UK. When they do, they should answer all application questions honestly and accurately, to the best of their knowledge and belief.

Are you introducing any exclusions related to coronavirus?

We have no plans to introduce exclusions related to coronavirus on our UK policies and we have no plans to stop customers applying for income protection, critical illness or life insurance at this time.

Do people applying for insurance need to tell you if they’re at increased risk of contracting coronavirus?

When a customer applies for income protection, critical illness or life insurance with AIG in the UK, we base our underwriting decision on the information the customer provides and on our underwriting philosophy at the time. So it’s important that they answer all application questions honestly and accurately, to the best of their knowledge and belief.

If a new customer who has been diagnosed with coronavirus approached AIG to buy insurance, we would postpone any decision to insure them until they make a full recovery. We do this with any application where we’re aware that a potential health risk is still being assessed.

Will you insure someone who has been diagnosed with coronavirus?

If a new customer who has been diagnosed with coronavirus approached AIG to buy an insurance policy, we would postpone any underwriting decision until they make a full recovery. We do this with any application where we’re aware of a potential health risk that is still being assessed.

Do you anticipate challenges in obtaining medical evidence needed to underwrite new applications?

Yes. Insurance reports are not the primary focus for the medical profession at this time. We have adapted our underwriting philosophy accordingly. Please refer to the question ‘Will you underwrite applications if there is no medical evidence?’

Are you still carrying out medical screenings?

No. Our medical service providers, who supply nurses to perform medical examinations, have paused their services for the time being in order to protect their nurses and customers. Please also refer to the question ‘Will you underwrite applications if there is no medical evidence?’

Will you still underwrite applications if there is no medical evidence available?

Yes. Our underwriters will consider all applications individually. We may be able to suggest alternative evidence or offer cover based on the application questions.

Where alternative evidence is not available, for those sums assureds that would normally require routine medical evidence, we could look to underwrite cover at a reduced level. The level of cover may then be increased at a later date when medical evidence can be obtained.

However, if a customer tells us on the application form that they are living with a complex medical condition we may be unable to offer cover without medical evidence.

How will you handle the free cover period if an underwriting decision is delayed?

Immediate cover is in place once an application is submitted and ends 14 days after a decision is made or when the cover starts (whichever is soonest). The maximum period of cover is 90 days. If we decide we can’t offer cover, it ends immediately.

Will you be making changes to your underwriting questions?

AIG Life are not currently asking any specific questions regarding coronavirus in our own underwriting journey. If a new customer who has been diagnosed with coronavirus approached AIG to buy insurance, we would postpone any decision to insure them until they make a full recovery. We do this with any application where we’re aware that a potential health risk is still being assessed.

However, a question has been added on Protection Platform, operated by UnderwriteMe. The question asks: ‘Have any of the following applied to you in the last month?’

• I’ve tested positive for coronavirus
• I’ve been advised to self-isolate
• I’ve had a new, continuous cough and/or high temperature
• I’ve had direct contact with someone who has been confirmed or suspected to have coronavirus
• None of the above

Are you accepting foreign residents?

Due to the rapidly changing environment we have decided to postpone all applications for:

• UK nationals living abroad on a short, medium or long-term basis or live outside the UK permanently
• Foreign nationals living abroad

Will you be undertaking medical screenings by video consultation?

Not at present. Video consultations cannot undertake physical tests such as urine or blood pressure as part of the medical screening. We are working with medical screening providers on alternative solutions.

When do changes to your underwriting approach come into effect?

Changes to our underwriting approach, as described above, come into effect immediately and apply to all individual life insurance, critical illness and income protection products as well as Group schemes where medical evidence can be requested.

 

Claims

Do life insurance policies cover death from coronavirus?

We hope and encourage our policyholders to stay healthy at this time, claims related to coronavirus would be reviewed and handled like any other life insurance claim.

Is coronavirus considered a critical illness?

No. The virus is not a named critical illness and therefore would not be a valid reason for a claim under a critical illness policy.

Have you received any claims relating to coronavirus?

We can’t comment on specific claims. AIG Life is focused on being here for all of our customers when they need us and on helping them through difficult times, whatever the reason for their claim.

Can someone claim on their income protection policy if they can’t go to work and they are diagnosed with coronavirus?

A diagnosis of coronavirus will be considered under an income protection policy. AIG Life policies are written with a minimum deferred period of four weeks but payments can be deferred up to one year. Payments are also dependent on the insured satisfying occupation definitions specific to their policy wording.

If someone is isolated or quarantined due to coronavirus, can they claim on their income protection policy?

Income protection is paid subject to the illness continuing beyond our defined deferred period – which is a minimum of 4 weeks but can be up to 52 weeks. If after a period of quarantine an illness develops and goes beyond the deferred period, we will consider a claim. All claims will be based on whether the individual meets the definition of disability in their policy. We would not expect coronavirus to be an extended illness in the vast majority of cases.

How will you deal with claims authorisation and payment in the event that you experience service disruption?

The company has activated its Business Continuity Plans and we’re all now working from home. We’ve always had a flexible working policy with claims assessors spread nationally so we’re operating business as usual. You can find our contact details here.

How would you treat an income protection claim for someone falling ill whilst being out of work?

It is difficult to provide a generic answer to this question. The terms and conditions of each policy are clear and would be applied in the various different individual circumstances. This could mean benefits are reduced or a different definition of incapacitated is applied. In the current climate we will consider the unique circumstances of each claim on its own merits and if consideration is needed beyond those permitted by the policy, we will escalate claims internally.

Do you have any plans in place to help customers having financial difficulty paying premiums?

We are currently investigating premium payment holidays in recognition of the difficult financial circumstances many of our customers may be facing.

Protection