Quiz question: Older age underwriting

The question was: In older age underwriting, a cognitive test performed on a client can help with which one of the following:

a) Signal whether the client has heart disease
b) Detect whether the client has dementia
c) Identify the client's intelligence quotient
d) Disclose a client's financial status
e) None of the above

The answer is: b). A cognitive testing program can help underwriters detect applicants who have dementia, according to Al Klein, a consulting actuary with the Chicago office of Milliman, Inc. Such programs can also help reduce anti-selection for insurance purchases and price the qualifying older-age applicants more competitively. He made the point in "cognitive Testing For Older Clients On The Rise," an article he wrote for January 18, 2010 issue of National Underwriter Life & Health.