AVS Notice

AVS Adjusts Underwriting Manual, Effective November 1st, 2011

Based on actual-to-expected studies, AVS is adjusting our credit structure for the use of statins versus the non-use of statins. AVS now has very solid evidence from our own evaluation population over 8 durations (years) that individuals using statins have some increased longevity or decreased mortality over individuals who do not use statins. Therefore, AVS will create an age dependent credit structure for the use of statins. The credit for individuals below 80 years of age will be 15 and the credit for those 80 years of age or older will be 10. The table below reflects the evidence that AVS used to document this change.

As most users of AVS Underwriting are aware, AVS uses a debit/credit model for the assessment of increased or decreased mortality associated with medically related impairments. In the early years of AVS, much of the criteria for the debit or credit structure came from collaborative work with insurance companies and application of their underwriting manuals to our industry. As our underwriting evolved AVS has relied more on specific statistical information associated with impairments as well as our own rapidly growing database. Today the studies on actual-to-expected results of our own data are providing insight to the adjustments for debits and credits of the specific population of individuals who have sold or attempted to sell life insurance policies in the secondary market. In the future, AVS will be making changes to debit or credit structure for certain impairments or effects of current medical therapy. In some cases these changes may be increased or decreased debits or simply a change in the biomedical markers that may cause a particular debit. Although this sounds confusing, the scope of the changes are very limited and generally involve moving the point where one debit stops and another debit structure begins. On November 1st, 2011, AVS will also make changes to pacemaker use, AICD use, valvular heart disease, and certain lab tests.

AVS is currently not contemplating any changes to the AVS2008 table.