Underwriting Mortgage Protection Insurance for Cancer Survivors
Code of Practice for Underwriting Mortgage Protection Insurance for Cancer Survivors
.$16x9-desktop-9cols-hd$.jpg?$16x9-desktop-9cols-hd$)
The Code was introduced to help as many cancer survivors as possible to get Mortgage Protection cover.
Broker FAQs
1. What is the Code?
From 6 December 2023, a Code of Practice on Mortgage Protection insurance for cancer survivors will apply. This means companies that provide Mortgage Protection insurance can ignore cancer diagnosis if treatment finished more than 7 years ago, or more than 5 years if diagnosed when under the age of 18. The Code was introduced to help as many cancer survivors as possible, to get Mortgage Protection cover.
2. What changes will Aviva make to their underwriting as a result of the implementation of this Code?
In line with the “Insurance Ireland Code of Practice for Underwriting Mortgage Protection Insurance for Cancer Survivors”, Aviva will disregard any disclosed cancer diagnosis where all of the following circumstances apply:
- The application is for a new personal decreasing term life insurance policy (Mortgage Protection) covering the risk of death only. No other products are covered by the Code.
- The application is to cover a mortgage on the applicant’s principle private residence. A principal private residence is where the applicant lives most or all of the time. The Code does not apply to mortgages for second homes or for buy-to-let properties.
- The sum assured applied for is the lower of the mortgage amount or €500,000.
- Treatment for cancer ended more than seven years prior to the application or more than five years prior to the application if the applicant was under 18 at the time of diagnosis.
If all the above criteria are met, Aviva will disregard the cancer diagnosis and no additional premium will be charged as a result of the cancer diagnosis, under an application for decreasing term life (Mortgage Protection).
3. How is ‘end of treatment’ defined?
End of Treatment means the applicant is in complete remission* and active treatment** ended more than seven years prior to the date of the application, or more than 5 years prior to the date of application, if the life assured was under age 18 at the time of diagnosis.
*Complete remission is determined by a cancer survivor’s treating oncologist. This includes the absence of signs and symptoms related to a cancer diagnosis which may be determined by, but not limited to, physical examination, radiological investigation, and serum biomarkers.
** The term “active treatment” represents the use of surgery, radiation therapy, chemotherapy, biological agents, immunotherapy, bone marrow transplant or any evidence-based medical approaches to cure a cancer. These therapies may have been employed in both the primary (adjuvant and neoadjuvant) settings and secondary setting. The term “active treatment” excludes anti-hormonal medications, or any form of preventative therapy or medicine designed to reduce recurrence risk following complete remission.
4. When does the Insurance Ireland Code of Practice for Underwriting Mortgage Protection Insurance for Cancer Survivors come into effect?
6 December 2023
5. What product is available in Aviva?
The Code applies to Mortgage Protection Cover only.
All other products are specifically excluded and normal underwriting criteria will apply.
6. My client requires a Mortgage Protection policy for more than €500,000 and meets the criteria for the Code. What should I do?
- Complete the application as usual, including the disclosure of the cancer diagnosis
- Submit the application via the NBO portal on Aviva BrokerSecure
- €500,000 will be accepted under the Code criteria and the balance will be subject to our normal underwriting requirements.
7. If my client has a policy in pipeline, does the Code apply to them?
Please tell us of any Mortgage Protection cases in your pipeline which meet the criteria and we will review them on a case-by-case basis.
8. My client has an existing Aviva Mortgage Protection policy, which was rated due to a history of cancer. He/she now meets the Code criteria, what should I do?
- Ask your client to complete a new application, including the disclosure of the cancer diagnosis.
- Input the application via NBO, and include the number of the existing Mortgage Protection policy that is to be cancelled.
NOTE: The new application will be based on the client’s current age.
9. My client’s application was previously postponed or declined. However they would fall under the criteria for the new Code of practice. What do I need to do?
Ask your client to complete a new application, including the disclosure of the cancer diagnosis.
NOTE: The new application will be based on the client’s current age.
10. My client’s policy issued before 6 December 2023. However it has now lapsed. If this policy is reinstated, will it avail of the new Code of Practice?
The Code of Practice only applies to new Mortgage Protection applications keyed on or after 6 December 2023.
11. Are there any changes to the terms and conditions of the Aviva Mortgage Protection policy as a result of this Code of Practice?
We have not made any changes to the terms and conditions of our mortgage protection contract as a result of us signing up to the Code.
12. My client’s application for mortgage protection was accepted under the code – can they avail of the mortgage guaranteed increase option in the future?/strong>
Clients that apply under the new Code of Practice will have access to the Mortgage Guaranteed Insurability Option. This option will be available to our clients whether accepted under the Code of Practice or not. The code does not apply any additional restrictions on exercising this option.
Return to Aviva Broker News
Aviva Life & Pensions Ireland Designated Activity Company, a private company limited by shares. Registered in Ireland No. 165970. Registered office at Building 12, Cherrywood Business Park, Loughlinstown, Co Dublin. D18 W2P5. Aviva Life & Pensions Ireland Designated Activity Company, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland. Tel (01) 898 7950.
Aviva Insurance Ireland Designated Activity Company, trading as Aviva, is regulated by the Central Bank of Ireland. A private company limited by shares. Registered in Ireland No. 605769. Registered Office: Cherrywood Business Park, Dublin, Ireland, D18 W2P5.