table shaving
With a reinsurance company's knowledge, table shaving is a concept used by direct writing life insurance companies that allows substandard risks to be placed as standard risks.
Additional Information
Table shaving is usually used with permanent products only. Maximums apply on age and amount, and limitations are set on the types of impairments allowed. The reinsurer typically either loads up the rates of the standard risk class or simply uses the same rates that it charges for substandard risks.
