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SRS Underwriting

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Get ‘Credit’ For The Work You Do

A carrier’s underwriting assessment involves the review of the overall medical history and the application of crediting tools to improve upon and provide the best underwriting class possible.
 
Here is a case study that demonstrates how credits can make a difference in the sale, by reducing the premiums:
  • 54-year-old female
  • Applying for $1 million of term life
  • Has type 2 diabetes; treated with Metformin
  • Build is 5’3”; 220 lbs.
Initial work up Table 4.
 
But with credits for:
  • Lifetime non-smoker
  • Income of $100,000
  • Preferred or better driving record
  • Negative cardiac testing
  • Controlled blood pressure
Final offer is Table 2!
 
Do what’s best for your clients with health history. Contact our Underwriting Department for assistance with your impaired risk cases.
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An Underwriting Team That Will Get Your Business Placed

One of the most important aspects to placing more business is a knowledgeable underwriting team to be your advocate for those challenging cases.

The Life Underwriting team philosophy is “never say never”.

We don’t give up on a case because it’s difficult. We take on the challenge and look outside the box for solutions. This innovation sets us apart from the rest and helps to get more cases placed for your clients.
 
Here’s one example:
 
We were presented with case on a 60 year old seeking $1 million of UL coverage with a Long-Term Care Rider. The medical records revealed a history of inflammatory arthritis and the LTC rider was declined:
 
  • 8/2016 joint pain in hands and feet. He was treated with prednisone and colchicine for presumed gout, but without relief.
  • Rheumatoid factor and uric acid testing came back normal.
  • He was then referred to rheumatology, was diagnosed with inflammatory arthritis and prescribed meloxicam. Joint pain improved after 3 months.
  • He has not been seen since 10/2018; at that time had no complaints of joint pain and was not taking any medication.
Given the time gap since the last visit in 2018 and no updated status of current condition, we went back to the carrier to discuss getting interim details to reconsider. We learned there had been no further episodes of joint pain nor any use of medication treatment since 2016. After review of the updated details, the LTC rider was then approved! Case was placed!
 
If we had not gone back to the carrier for reconsideration, the case would have remained a decline on the books. Another way we made a difference to our broker and the client.
 
Let our Underwriting Team help you with your challenging cases and generate more sales this year. We look forward to hearing from you.
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LTC Underwriting V.S. Life Underwriting

Long-Term Care and the cost of care can be overwhelming for most. In the past, traditional stand-alone LTC policies were the only way to insure long-term care expenses.

These days, there are more ways to obtain this valuable coverage – including LTC riders on Life Insurance policies.

Underwriting long-term care risks can be very different than underwriting for life insurance. LTCi underwriting takes into account medical impairments that impact ability to perform daily living activities. Whereas, life underwriting is more concerned about impairments that affect mortality, or life expectancy.
 
In some cases, your client may be eligible for life insurance at a favorable rate class, but may be rated or declined for long-term care.
 
This recent case study shows how different underwriting mortality vs. morbidity can be:
  • 62 year old female
  • Seeking $1 million of UL coverage with a Long-Term Care rider
  • Non smoker; normal build
  • Hypothyroidism diagnosed in 1980; well controlled on medication
  • Was seen once by a chiropractor for back pain with improvement
  • Diagnosed with scoliosis
Final underwriting decision: Super Preferred for life coverage; Standard for the LTC rider due to scoliosis and back pain history
 
Non-traditional long-term care insurance and chronic illness riders are the perfect solution for those impairments that would be declined for traditional LTC riders. These alternative riders are automatically available on eligible permanent products with little to no additional underwriting.
 
Whatever the case may be, there is a product we can pivot to, to cover long-term care needs. Contact your Underwriting Specialist, we’re here to help you sort through the different options and pre-qualify your client for this much needed coverage.
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Placing Sleep Apnea Cases: A Breath Of Fresh Air

Imagine the thought of not being able to take in a breath, then suddenly gasping for air when you’re able to breathe in again. Now, you’re probably thinking to yourself this sounds a lot like the feeling you sometimes get with certain not-so-favorable offers on impaired risk cases!
 
All kidding aside, this is actually what happens with people who have sleep apnea. An individual suffering from sleep apnea may not even be aware of it while it’s happening, but could still experience symptoms – most commonly, daytime sleepiness, morning headaches and loud snoring. Sleep apnea restricts oxygen to vital organs and if left untreated, it can lead to more serious conditions such as heart arrhythmias, stroke and diabetes.
 
Diagnosis is usually made after undergoing an overnight sleep study. Severity is measured by the Apnea/Hypopnea Index (AHI) which represents the number of episodes per hour. An AHI score of 5-14 indicates mild severity, 15-30 indicates moderate and over 30 is considered severe.
 
CPAP (Continuous Positive Airway Pressure) is usually the recommended treatment. Other treatments may include dental appliances or surgery. Follow up sleep studies to monitor the effectiveness of treatment are also often recommended.
 
So what does all this mean for life underwriting?

The key to favorable outcomes isn’t as much the severity at diagnosis as it is the follow up and compliance to treatment.

In some cases, lack of compliance or failure to follow up can lead to highly rated offers and declines.
 
Take for instance this case involving severe sleep apnea but with good follow up and compliance:
  • 66 year old male applying for $500k of Term coverage
  • Lifetime non-smoker
  • Height 6’ 4”, weight 220 lbs
  • Hypertension, well controlled on Amlodipine
  • High cholesterol, well controlled on Pravastatin
  • A sleep study done in 2016 revealed severe obstructive sleep apnea with an AHI of 78 and CPAP treatment was initiated
  • Sleep apnea is well controlled, without symptoms, and good compliance on nightly CPAP use.
Underwriting decision: Preferred NS for the sleep apnea history!
 
Place more business and earn more commissions! Our Underwriting Team is here to help you get the best possible underwriting offer on each and every case.
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Help Us Help You: The Art Of The Cover Letter

Back in elementary school we called the game Gossip. You know, everybody got in a circle and the first kid started a story by whispering it into the ear of the person to the left and then he or she passed it on until it had gotten all the way around. The last person would relate the story to the whole group and everybody would laugh because the final version was so different from the original after passing through so many intermediaries.
 
Well, think of a brokerage carrier underwriter as the last person. By the time the paperwork for new coverage arrives at the Mother Ship (AKA the carrier) it has gone through (to name a few) the advisor, the advisor’s staff assistance, a case manager at the brokerage agency and the new business person at the insurance company. If the story is still clear it is not because it hasn’t had every opportunity to get muddled.
 
The best way to avoid the delays, confusion and possible declines that might come from ruptures in the convoluted lines of communications is a cover letter submitted with the case.

It doesn’t have to be Pulitzer Prize-worthy, just a clear and concise explanation.

Don’t necessarily count on the brief information requested on the app to paint the full picture for an underwriter.
 
Expand on the following in a cover letter:
  • Restatement and/or fuller explanation of the purpose of the coverage
  • Method of the determination of the face amount
  • The relationship(s) among the owner, insured, beneficiaries and premium payer
  • Full description of applied for and inforce coverage on other family members (if for personal purposes) or other key people (if for business purposes)
  • Available documentation available if needed – e.g. trusts, financial information, business agreements
  • Any other information concerning circumstances that might raise questions with the underwriter (e.g. where the amount of insurance is more than the standard financial guidelines)
Playwright George Bernard Shaw said, “The single biggest problem in communication is the illusion that it has taken place.”
 
The Apostle Paul said, “A letter covers a multitude of sins!”
 
Don’t rely on the illusion of clarity that often hovers over an application as it is passed around the circle. We have several on board who fancy themselves literary and will help draft and submit the cover letter you need. Call and ask!
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Score With Life Insurance Underwriting Niches

Take a look at some surprising possibilities that can help you win a sale for clients with health impairments.
 
Preferred Plus MAY be available even with the following conditions:
  • Anxiety/Depression/Mood Disorder – One episode, duration of less than one year, recovered, no current medication
  • Asthma – Mild exercise induced or mild seasonal asthma
  • Osteoporosis – With no complications
  • Some skin cancers – Basal cell, superficial squamous cell carcinoma or single atypical nevus or dysplastic nevus (mole) with no family history of melanoma; Must have well-documented dermatology follow-up
Preferred MAY be available even with the following conditions:
  • Anxiety/Depression/Mood Disorder – Current and only on one drug; Well-controlled
  • Epilepsy – No seizures for more than 5 years; Not taking any medication
  • Moles/Nevi – Up to 3 atypical or dysplastic nevi (moles) with no history of melanoma or family history of melanoma and favorable dermatology follow-up
Contact the Life Underwriting team for more details and soon win the fanfare of your clients.
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Succession Planning For Your Business Owner Clients – We Can Help

Business owners are faced with many challenges when doing the planning related to a successful exit. Typically, business owners focus on day-to-day operations far more than on retirement, or on keeping the business going in the event of death. Business owners need your help!

You can rely on our expert guidance – we’ll help you target potential opportunities and navigate through the entire planning process.

We offer the following exit planning tools – at no cost:
  • Access to a Succession Consultation Group
  • Materials that will help motivate and engage your clients
  • Professional review of a completed business succession fact finder
  • A report summarizing the findings
  • Participation on conference calls with you and your clients
  • Analysis including applicable ideas, agreements and concepts
  • Undeniable value to your client
Target Market:
  • Owner aged 45-60
  • Substantial owner net worth
  • Owner wants to exit business in 2 to 10 years, or transfer the business at death
  • History of stable earnings over a period of years
  • Annual revenue of $2 to $50 million
  • Sustainable and transferable cash flow
  • 5 to 100 employees
We deliver the most relevant tools for you to use – please contact us today for assistance with growing your share of sales in the business insurance marketplace.
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Can You Get A Sweet Deal For Challenging Cases?

Diabetes, there’s no way to candy-coat it – this all too common yet serious disease can present some challenges in life underwriting.

An estimated 1.7 million Americans are diagnosed with diabetes each year. Complications can include heart attack, stroke, cardiovascular and kidney diseases.

The good news is diabetes can be well managed with proper diet, exercise and medication and in turn helps to reduce the chances of developing complications.
 
There are several factors that underwriters look at when reviewing diabetes cases.
 
These include the type of diabetes (Type 1 or Type 2), the current age of the client, age at time of diagnosis, A1c levels (average blood sugar), treatment and any diabetic complications. Type 2 diabetes is the more common form in which the body is resistant to insulin. Ratings are generally more favorable for Type 2 than they are for Type 1.
 
Some top carriers have programs that could be the icing on the cake to getting the best possible offers for your diabetic clients.
 
Take a look at these examples:
  • Type 2 Diabetes: 75 year old male non smoker, diagnosed with 10 years ago, A1c levels have averaged 7.0 or better, 5’10 207 lbs, blood pressure is 143/90 and cholesterol is 270 with a cholesterol ratio of 6.0 – PREFERRED rating!
  • Type 2 Diabetes: Age 50 and older with excellent diabetic control, treated with diet and oral medication only, no complications – STANDARD PLUS is possible!
  • Type 1 Diabetes: Over age 50 with excellent control and no complications – TABLE B is possible!
Our Underwriting Team is ready to help get you the sweet deals you need in order to get your impaired risk cases placed – contact us today.
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Credit Where Credit Is Due – Helping You Make The Sale!

Diabetes is a metabolic disease in which a person has high blood sugar either because the body does not produce enough insulin or because cells do not respond to the insulin that is produced.
 
The most well known types of diabetes are:
  • Type 1 (treated with insulin)
  • Type 2 (treated with a combination of diet, exercise and oral medications) and
  • Gestational diabetes (a type of diabetes which occurs during pregnancy.)
When diabetes is coupled with a client who is not an ideal weight, the underwriting class will increase.

We have an A+ carrier will give credit where credit is due – applying health and lifestyle credits to provide the best possible offer.

Let’s take a look at this case study:
  • 54-year-old female
  • Non-tobacco user
  • Applying for $1 million of Term Life
  • Has type 2 diabetes; treated with Metformin
  • Build is 5′ 3″, 220 lbs
Initial work-up – Table 4
 
On submission and review by this A+ Rated carrier, the client received Credits for:
  • Lifetime non-smoker
  • Income > $100,000
  • Preferred or better driving record
  • Negative cardiac testing
  • Controlled blood pressure
Once those positive credits were applied, this client went from Table 4 to an Underwriting Offer of Table 2.
 
Contact our Life Underwriting Team today – let’s work together to make your next sale!
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Key To Success: Answer Your Underwriter’s Questions Before They Ask

If you were an underwriter and received the following application on your desk, what questions would you have?
  • Female, age 35
  • Noted to be retired with no annual income; Net worth left blank on the app
  • Seeking $8 million of term coverage; Purpose of coverage left blank on the app
I know you’d be scratching your head wondering why is this woman retired at such a young age and why is she looking for $8 million of coverage?
 
What the producer forgot was a good cover letter explaining the purpose of the coverage. This client just inherited a very large estate and recently quit her job. Estate taxes were a concern. Based on the inheritance, the $8 million applied for was justified.
 
How can we help in this situation?
 
We are here to provide our expertise when it comes to writing good cover letters. We can even write them for you. We will help explain the purpose of your applications to our carrier underwriters.
 
However, the most important source of information about a proposed insured is you, so we’ll need your help to prove your applications are financially justified.
 
Key information we’ll need includes:
  • What is the purpose of the insurance?
  • How was the face amount determined?
  • Who will be the policyowner and premium payor?
  • What is the current amount of in-force and applied for insurance?
  • Do you have any other pertinent documentation you can provide to explain how the amount of insurance was determined?
Give us the opportunity to help you move your applications smoothly through underwriting. If we answer our underwriters questions before they ask them, who knows?
 
Quicker approvals leading to faster receipt of commissions – then we move on to your next big app waiting to happen.

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