This is the 12th and final article discussing the benefits of using the Laser Underwriting Approach for Trial Applications. We have addressed 10 of the top questions that can help make the approach effective, utilizing an agency-based staff underwriter.
- What is your client's medical history, including conditions, treatments, or medications?
- What is the amount of the application?
- What is your client's age, tobacco status, height, weight, and ability to live on his or her own?
- Are you in competition? What are the other companies, face amounts, and ratings?
- Do you have related applications with other companies? Did you already hurt your chances of getting the best offer?
- Will your client accept an increased premium?
- Are there any avocation, financial, aviation, or legal concerns?
- Is the amount of coverage appropriate for the client's financial situation?
- Are there any sensitive histories such as alcohol, drug, or motor vehicle problems?
- What is the importance of this client to you, such as being a center of influence who could provide referrals?
This month, let's recap the thought process that you – the agent or broker – have undertaken while gathering information for the trial application to make sure all areas have been covered. After all, while you are finishing your appointment with the applicant, he or she is present with you and ready to answer any questions you may have, so let's make sure we have everything.
Have you have taken all the medical information, remembering to ask your client what different treatments and medications were involved, as well as how well he or she completed the treatment? Did your client comply with doctor's orders precisely through the completion of treatment? Was his or her attitude good? Keep in mind that the answers to these questions are probably recorded in the doctor's records, so if we want to get the best underwriting decision from a carrier, it helps to know this information in advance.
Next, did you make sure to pinpoint the amount of coverage your client needs or wants? When the trial application goes to a carrier, it helps speed the underwriting process when the underwriter knows the definite face amount you are requesting.
In addition to the medical information you have retrieved, it is important to make sure you get an accurate date of birth, height, weight and current and past tobacco status. For a more elderly client, record how well your client does living on his or her own. This information gives the staff underwriter a better picture of the client's overall medical status.
The next part of your checklist is to make sure you are aware of all of your client's in-force policies, as well as other companies with which your client is applying. This will show if you are in competition, and it will give you and the staff underwriter a better stance in knowing that the face amount is reasonable.
Along the same lines, if there are related applications already out there with other carriers, the staff underwriter will know if the direct line carriers or reinsurers are "saturated" with your client's applications and can formulate an appropriate strategy. Many times, a carrier will come back to the broker very quickly with a high rating or decline simply because the carrier's reinsurer has already seen the risk with another carrier. Saturating the market is something the staff underwriter can help you avoid.
When you are sitting with your client, and you know there could be an increased premium or rating, try to find out how much the client can afford or is willing to pay in extra premium. This will help the staff underwriter to negotiate an offer for your client that will fit within his or her budget.
