Reinsurance - Look before you leap

The term ‘avocational’ describes activities taken up outside one’s regular work or profession. Asking life and health insurance applicants whether they participate or plan to participate in hazardous sports, for example, is standard practice. Among the most common avocations declared at underwriting are climbing, diving, motor vehicle racing, caving, private aviation and parachuting. Any additional rating will typically be charged as a flat per-mile cash extra to offset the increased risk an i­ndividual brings to the insured pool. There is one very obvious distinction between ­a...