Consultation has started on a new ABI guide to functional assessment tests (FATs), which seeks improved understanding by consumers comparing IP, CI and LTC policies and by claims managers dealing with claims.
The guide explains how FATs are broken into two groups of tests – activities of daily living (ADLs) and activities of daily working (ADWs) - and includes a checklist for comparing policies. This list, intended for consumers and their advisers outlines issues of: degree of disability defined; type of ADL or ADW tests used; severity of the tests; number of ADL/ADW tests required to fail before policy pays out; number of activities tested. “Generally the more activities available to be tested, the easier it is to make a successful claim,” the document states. Among the advice ...
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