Abstract
The purpose of this paper is to provide a unified theory for the evaluation of underwriting requirements where this evaluation is based on the measurement of the levels of mortality costs associated with such requirements. The two underwriting models presented will be used to develop identities between the observed differentials in the screening potential of the requirements under study and the expected differentials in the mortality costs associated with the various resultant issue classes. The distinguishing feature between the two models is the assumption regarding historical mortality experience data. One model assumes the existence of such data for each of the resultant issue classes and, accordingly, is applicable primarily to the evaluation of a medical examination. The other model assumes the existence of historical mortality experience data only for the combined issue block, and is generally applicable to the evaluation of other types of underwriting requirements. The practical considerations involved in the application of each model are explored in detail.