OTAs and Informal Cases “finding a strategy and uniform process" Preliminary Underwriting

Successful preliminary underwriting requires complete and accurate data, good rapport between underwriting and marketing to determine what makes sense from a financial and product sales standpoint, and appropriate use of HCB and carrier resources.

Optimizing the Preliminary Process The right moves at the right time Team: marketing and underwriting Fewer carriers Quicker outcome – reduce the number of touches

Why are we concerned about how effectively we handle informal cases? 50 % of informal apps are closed. First quarter 2016 - 130 informal applications were closed. The average APS costs $75. On closed cases our APS costs are not reimbursed Carrier partnership – low placement ratio

Why is the case being submitted informally? Health issue(s)? Business or financial concerns? Market survey? Preferred class? Don’t know?

What do we need to know? What was illustrated Health issues Other insurance activity Rating/premium needed for sale Replacement? 1035? Better term rate? Business insurance?

Documentation and resources Completed preliminary application Prior application in Agency Integrator Medications Underwriting questionnaires Cover letter

Informal app is received Can be a filter for highly substandard cases where chance of placement is low. Medical history on app does not meet sales expectations Call carrier underwriters to discuss Quick quote Consult marketing to see if there are alternatives Close the case

Preferred class determination - use Health Analyzer? Quick quote. Aviation, avocation, foreign travel – get a questionnaire Clean health history – need more detail Business insurance – address before medical records are ordered

Legitimate informal situation Determine appropriate medical records to order Avoid too many records for elderly Use your underwriter as a resource

Select a carrier Review records. Review most recent visits and medical history summary. Additional records needed? Does medical history still meet sales expectations? Review composite of illustrated offers.

Select a carrier Shop to four or five lead carriers Table shave – LNL, Principal Consider niches Clients too old – use UW summary for the carriers Exam has to be completed – ask the carriers to pull labs

Tentative offers are received Ask marketing to run composite illustrate of offers received. Was good offer(s) received? If not, push the carrier. Use positive criteria for appeal. Leverage better offer to improve the lead carrier’s offer.

What is an OTA? A formal application that is not approved as applied for Rated Preferred class is worse than applied for Declined Postponed Withdrawn because of a tentative offer or final offer

What is an OTA? It can be considered an informal application on the backside of a formal application

Adverse offer is received Get the specific reason Actual lab results Impairment(s) Is the decision reasonable? Call the broker and let them know this is a good offer Document the OTA

Adverse offer is received Not sure the offer is reasonable: refer decision to the HCB underwriter and document the OTA. Try to keep the case with the same carrier – Push back on the carrier underwriter

Preferred class other than applied for Use Health Analyzer Use results to appeal to carrier. Get composite of carrier premiums Formal app to another carrier – be aware of additional requirements for that carrier.

Rated Offer Carrier is firm and better off possible: No medical records. If not, can we obtain them from the carrier? Significant case – quick quote or shop. Favorable offer(s) received – be aware of additional requirements

Be Alert! Every new piece of new information received in the underwriting process is an opportunity to evaluate the course of action and determine what makes sense and how to proceed in the most efficient way.

Questions?