1 One-time AD: requires a one-time modification. 2  Recurring AD: requires a check or service to be performed on an ongoing basis at specific intervals.  N/A AD: a not applicable AD, but is still noted to sohw awareness of its existence.
Not all life insurance policies are underwritten, but because some are it is important to understand what it means. Underwriting is a term used by life insurers to describe the process of assessing risk, ensuring that the cost of the cover is proportionate to the risks faced by the individual concerned. People with the same or similar risk pay the same or similar premium rates.
Underwriting expenses are the costs that an insurance company must pay to remain in operation. These costs are subtracted from the income of insurance companies to calculate net profit. Underwriting expenses can include a wide variety of costs. These expenses are also used by insurance companies to calculate the expense ratio, which is a ratio used to determine the percentage of premiums earned in a given period that must go to underwriting expwnses.