ACORD Completes New Standardized Life Insurance Application

A nonprofit technology standards group has developed a tool aimed at clients who want life insurance and the agents and advisors helping them get it.

The group, ACORD, completed work on a standardized life insurance application.

Creating a standardized form should help life insurance sector players develop better online life insurance shopping systems, according to Bill Pieroni, the ACORD CEO.

But ACORD notes that the new form may not create a completely standardized shopping experience. "Carriers will retain flexibility to customize and/or omit questions to reflect their underwriting parameters and preferences," the group says.

What it means: Applying for life insurance may be about to get faster and somewhat easier.

The details: An ACORD team created the application together with life insurers, insurance distributors and the Interstate Insurance Compact, an organization that reviews life insurance forms and other filings for most states and the District of Columbia.

Compact approval means the application form is cleared for use in 47 jurisdictions.

Some life insurers that belong to ACORD will be able to use the compact to get standardized form filings approved through an expedited process, ACORD says.

The application includes supplemental forms that cover topics such as potentially dangerous hobbies and information supplied by insurance agents and medical examiners.

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