Underwriting Suzy Saxon Second Vice-President

TMK1536 092910 Agent training only. Not for sales use.

Underwriting

Suzy SaxonSecond Vice-President



Agents are Field Underwriters

• Agent's responsibility to collect accurate and complete information from the applicant

• This helps the Agent: Get policies issued quicker Get paid quicker Reduce follow-up work Reduce declines, cancels, and not-takens Increase bonus and renewals Make more money!


Product Suitability

• You should determine in each case that any policy sold is suitable to the needs of the applicant

• You should consider such issues as: Proposed insured's financial condition Need for insurance Values, benefits, and surrender charges in

relation to any existing coverage Whether in the totality of each applicant's

circumstances, the sale is suitable


Instructions to Agents for all Applications

• Read health questions as they appear• Ask applicant for explanations to 'Yes' answers• Complete 'Explanations' section for every 'Yes'

answer• If additional explanation required, attach Cover

Letter to the application• The more information you can provide regarding

'Yes' answers to health questions, the more successful you will be in effectively submitting the application


Agent Statement

• Make sure they understand the difference between the Applicant and Proposed Insured

• Did you see the Proposed Insured?


Instructions to Agents (Continued)

• Life Insurance policies go through an underwriting process

• Underwriters may request additional information, so let applicant know they may receive call

• Underwriters ultimately determine insurability• Process determines amount of rated premium• Agents should not make promises to applicants


Underwriting Requirements

• Info Agent• Oral Specimen• HIV Consent Form• MVR• Rip Call (QAC)• IBU• Inspection-SBSI• Criminal Records Check


Underwriting Requirements Continued

• APS Thru AI Records• Paramed• Blood Profile• Urine Specimen• Electrocardiogram• Treadmill EKG• Fingerstick Test• HO Handling


SAM E-mails

Daily


OI125001 (OI125002) New Business Status Report

Weekly


LNL New Business Status Report

• APS – Attending Physician Statement• MVR – Motor Vehicle Report• PARAMED – Medical tests required• ADDIT EXAM• ORAL SWAB• COD REMITTANCE• INFO AGENT



Underwriting requirements may be requested on any proposed insured on the app. If the app contains a spouse rider, the requirement will indicate whether the requirement is on the insured or the spouse.


Info Agent

Can be any message from Underwriting, such as a request for the proposed insured’s doctor’s name, address, and telephone number or a message indicating that the case requirements are under another file number when more than one case is submitted on the same proposed insured at the same time.




Oral Specimen

Indicates that Underwriting is pending for the oral specimen lab results that the Agent took at app time, provided the barcode number on the app, and mailed immediately to the lab Note: if the app does not provide the barcode number, the following message will be sent to the Branch with the oral specimen requirement:


Oral Specimen

Please advise barcode number of oral and date it was completed. We will pend 7 days. If the barcode number or the oral specimen results are not received within 7 days, Underwriting has two options:1.Will cancel if the face amount is less than $100,000.2.Will order an exam with blood profile and urine specimen if the face amount is $100,000+. Underwriting will still accept the oral instead of the exam if the oral specimen is obtained and the barcode number provided to Underwriting before the exam is completed.


HIV Consent Form

The form that must be completed and signed in states that require this form. If this requirement is received along with the oral specimen requirement, it is for the Agent to obtain. If this requirement is received along with exam requirements, it is for the examiner to obtain.


HIV Consent Form


MVR

Motor vehicle report Underwriting requests this from an outside vendor.


Rip Call (QAC)

Indicates that Underwriting has requested a telephone interview to be completed through our QAC department. If the interview has not been completed within 7 days, the following message will be sent out to the Branch: Attempts to contact applicant at given number have been unsuccessful. Please have applicant call 1-800-288-4265 to complete the phone inspection.


IBU (Interview by Underwriter)

Indicates that Underwriting has requested a telephone interview to be completed through an outside vendor. Not all cases are sent to the same IBU Underwriter for handling, so initially the requirement will only indicate “IBU.”


IBU (Interview by Underwriter)

If the interview has not been completed within 7 days, the following message will be sent out to the Branch:

Please have the PI call 1-XXX-XXX-XXXX to complete the IBU. We will pend 7 days. The toll-free number will be specific to each case according to which IBU underwriter is to be contacted.


Inspection – SBSI

Indicates that Underwriting has requested a telephone inspection interview through an outside vendor. If the interview has not been completed within 7 days, the following message will be sent to the Branch: Attempts to contact applicant at given number have been unsuccessful. Please have applicant call 1-800-444-7274 ext. 1 to complete the phone inspection with SBSI.


Criminal Records Check

Indicates that Underwriting has ordered a criminal records check through an outside vendor.


APS Through AI Records

Indicates that Underwriting has requested an attending physician’s statement on the proposed insured through AI Records. It will also indicate the name of the doctor or facility from which the records were requested.


APS Through AI Records

AI Records contact information:

Website: https://prodwebapps.ailife.com/apsweb/login.aspx Username: libertyPassword: national1 Phone #: 866-922-6453Email address: [email protected]


Underwriting

ParamedBlood ProfileUrine SpecimenElectrocardiogramTreadmill EKGFingerstick TestHIV Consent Form


Paramed

Indicates that Underwriting has requested an exam in combination with the other requirements such as blood profile, urine specimen, electrocardiogram, etc. through one of three outside exam companies


Paramed

Portamedic’s contact information:Phone #: 866-335-5575Website: www.portamedic.com

EMSI’s contact information:Phone #: 800-872-3674Website: www.emsinet.com ExamOne’s contact information:Phone #: 877-93-exam1 or 877-933-9261Website: www.myexamone.com


Paramed

Note: If the exam company has been unsuccessful in scheduling the exam within 14 days, the Branch will receive the following message:

Please assist in getting the exam scheduled and completed. We will pend 7 days.

(We will pend longer only if the exam has been completed or at least scheduled)


Agents Instruction Guide


Field Underwriting

Applicants with the following conditions will be automatically declined.

Terminal IllnessLou Gehrig’s Disease or Amyotrophic Lateral Sclerosis (ALS)HIV / AIDS or Positive Test to Antibodies for AIDS virusAlzheimer’s Disease or Senile DementiaConfined to a hospital or nursing facilityUse of illegal drugs within a two-year periodConfined to jail


Field Underwriting

Do not submit an application for standard issue for the following conditions.

An ALX will be considered if the underwriters determine the proposed insured is eligible for coverage.


Field Underwriting

Heart / Circulatory / Blood Disorders:

Congestive Heart Failure within 1 yearDefibrillator ImplantAngioplasty, Coronary Bypass, Heart Attack or Diagnosis of Angina within last 6 monthsCoronary Artery Disease and Heart Valve ReplacementMore than 2 Heart AttacksHeart Attack, Bypass or Stroke and still smokesMore than 1 strokeSickle Cell Anemia


Field Underwriting

Diabetes and Related Disorders:

Diabetes and Kidney Disease (App may be submitted if the proposed insured has diabetes without a related condition)Insulin-dependent Diabetes and No Doctor consulted within last two years


Field Underwriting

Cancers:

Cancer, other than skin, last treatment within 12 monthsMetastatic Cancer (spread to other sites) within 10 yearsHodgkin’s Disease, last treatment within 2 yearsLeukemia Diagnosed prior to age 50


Field Underwriting

Misc. Medical Disorders:

CirrhosisCystic FibrosisDepression - hospitalized within 6 months - or unable to workSuicide Attempt within 5 yearsEmphysema or Chronic Lung Disease using Home OxygenKidney DialysisTransplant Recipient of any major organ (except Kidney Transplant)


Additional Field Underwriting

Do not submit an application for standard issue if the medical condition is disabling:

Example: Disabled due to …•High Blood Pressure•Diabetes•Cancer History•Stroke

Exception: Not all disability due to back disorder requires an ALX


Policy Issue

• Issued as Applied For• Issued COD – Additional Signature Required• Issued – Insured is Rated• Issued COD – Proposed Insured Qualifies for ALX

Only.


Issued COD – Additional Signature Required

• COD Letter of Transmittal - amount of premium to be collected $0.

• Policy Amendment - advises proper signature required on Policy Delivery Acknowledgement.

• Policy Transmittal Letter - instructs Agent to refer to Policy Amendment.


Issued COD – Additional Signature Required

• Policy Delivery Acknowledgement - Agent has 30 days to place policy and return a copy of the signed Policy Delivery Acknowledgement and original signed COD Letter of Transmittal to Home Office.


Issued COD – Insured is Rated

• COD Letter of Transmittal – amount of premium to be collected $0.

• Policy Amendment - explains reason for rating – policy issued at reduced face amount to match submitted premium.

• Policy Transmittal Letter - shows original face amount and rated premium. If customer wants original face amount applied for rather than the reduced amount, the Agent should collect the additional premium at delivery or have the customer sign the COD Letter of Transmittal to draft the additional amount of premium due.


Issued COD – Insured is Rated

• Policy Delivery Acknowledgement - Agent has 30 days to place policy and return the signed COD Letter of Transmittal to Home Office. The original signed Policy Delivery Acknowledgement should be filed in the Branch office.


Issued COD – Applicant Qualifies for ALX Only

• COD Letter of Transmittal – amount of premium to be collected $0.

• Policy Amendment – plan amended to ALX due to medical history and/or Underwriting rules. ALX policy issued at reduced face amount to match submitted premium up to a maximum of $15,000.



• Policy Transmittal Letter – if the premium submitted with the application will purchase less than a $15,000 ALX, an ALX policy to match the submitted premium will be produced and include an alternate premium quote for an ALX policy equal to the original amount applied for up to a maximum of $15,000.



If the customer wants the alternate amount, the Agent should collect the additional premium at delivery, or have the customer sign the COD Letter of Transmittal to draft the additional amount of premium due.



• Policy Delivery Acknowledgement – Agent has 30 days to place policy and return signed COD Letter of Transmittal to Home Office. The original signed Policy Delivery Acknowledgement should be filed in the Branch Office.


OI525002 (OI525003)Pending COD Policies by Days Pending

Weekly


What questions can you ask an applicant to determine if you

should present ALX?



•How’s your driving record?•Are you receiving disability income?•What medications are you taking?•Do you have: cancer, diabetes, heart problems, high blood pressure?



When should you submit a trial application?



Let’s look at some common scenarios.



What should you tell an applicant for $50,000 whole life who has

diabetes and high blood pressure?



On payroll deduction, if an applicant is declined for Group

Term and ALX, are there any other options to get a policy issued?



What happens if an applicant answers ‘Yes’ to any Question 2-8 on the Group Term application?



What have you put on your To Do List?


Date post:	10-Jan-2016
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Underwriting Suzy Saxon Second Vice-President

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