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

3. 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.

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

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

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

7. 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?

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

9. 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

10. 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

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

12. 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.

13. 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

14. 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.

15. 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

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

17. 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

18. 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

19. 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.

20. 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

21. 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.

22. Questions?