The Underwriting Pulse by benbenzhou


									        The Underwriting Pulse
 Assurity Life Insurance Company                                                    Vol.1/Issue3― May 2006

                                          Financial Documents
Financial underwriting is a critical part of the            documentation, which can be as simple as reviewing
underwriting process, no matter what type of                copies of pay stubs or as complex as analyzing
coverage is being applied for. One of the purposes of       financial statements provided by the proposed
financial underwriting is to prevent anti-selection or      insured. The Product Guides are a valuable resource
speculation against the insurance company. Financial        when financial documentation is required; refer to the
underwriting guidelines are established to support the      underwriting guidelines section. Sending this
insurance company’s goals for profitability and             information with the application will expedite the
expense recovery and to prevent excessive losses.           underwriting process. When income proof is needed,
                                                            the following chart shows some of the more common
The most common types of coverage requiring                 requests. We may also request additional tax
financial justification are disability income and           information or forms if needed, however, copies of
business overhead expense. Part of the underwriting         state tax returns are usually not requested.
criteria includes obtaining current income

       Business Entity                   Personal Tax Return                Business Return

       Employee only                     W-2 or most recent pay
                                         stubs. (If at current job
                                         less than one year, pay
                                         stubs may be more

       Sole Proprietor                   Form 1040 including
                                         Schedule C (Form 1040
                                         and Schedule F for farmers.)

       Owner of a “C” Corporation        W-2 and Form 1040                  Form 1120, including
                                                                            Schedule E

       Owner of an “S” Corporation       W-2 (salary) and Form
                                         1040 with Schedule E,              1120 S and Schedule K-1
                                         Part II

       Partner of Partnership            Form 1040 and Schedule             Form 1065 and Schedule
                                         E, Part II                         K-1

For Agent Use Only.                                                                                             1
Financial Documents Continued

It is important that we receive the most recent         Our chart may not be all-inclusive, but will cover
documentation. Income is usually higher each            most applications. You may include copies of tax
successive year, and current documentation places       returns, but our approach has been designed to be the
your client in the most favorable position. For self-   least intrusive for the majority of your clients.
employed individuals, eligible amounts are based on     Financial documentation questions may be directed
net income (which generally is the income after         to the Contact Center at 1-800-276-7619 ext 4264.
business expenses are deducted).

                                                 Agent Q&A

I received an email asking to put all cases with        in separate emails due to privacy regulations. We
pending requirements on separate emails. Why is         cannot put sensitive information for one client into
this?                                                   another file. When we do get more than one case in
                                                        an email, we have to separate requirements, which
Although we send you a merged pending report, we        can delay the process
ask that you list each policy’s pending requirements

              If you have a question, please send it via email to

For agent use only.                                                                                            2
                                         New Extranet Information
In January, changes were made to policy                 Generate Pending Report
information tools on the Extranet. We have received     (PDF or Raw XLS)
several inquiries about this. Here is a guide to help      • This feature will allow you to see the same report
you more fully understand these changes.                     received in an email in either PDF or XLS
Underwriting Requirements
Pending correspondence summary reports will be          Search for a Policy
generated and sent to you by email when:                You will be able to see all of the policies down your
   • An underwriting requirement added to our           hierarchy that are associated with you.
     reporting system has not been met.                     • Once the desired criteria is entered and the button
   • A requirement has not been met by 20 days,               labeled “Search” is selected, the screen will
     40 days, 60 days and 80 days after it was                display those polices matching the criteria.
     entered in our LifePro system.                         • By clicking on any item in the desired row you
                                                              may view:
Suppression and Agent Controls                                Mailed Date – A new feature not previously
You can customize email settings and report                   available.
formats. If desired, you may suppress your                    Contract Status – New expanded status is
automated emails.                                             displayed. For example, instead of “Pending,”
    • You can customize your subscriptions by                 the status now shows Pending - Submitted.
      filling in email addresses for Underwriting             Issued – This date will only be populated if the
      (ICS), Sales (SCS), Marketing (News) and                policy is active.
      Commissions/ Accounting.                                Email home office button – You can use this to
    • You can choose between PDF and Microsoft                send an email directly to our Contact Center.
      Excel for the format of your email reports.             Policy and identifying information are
                                                              automatically entered – you just compose and
Policy Information Report                                     type in your question.
A new Policy Information Report will include
information from the Policy Activity report.            Display Recent Policy Activity
                                                        This report will show all policies pending, terminated,
                                                        suspended or activated within the last 60 days.

For agent use only.                                                                                               3
                 Information Requests: What we need to underwrite an application
Our underwriters often need additional information to   AVOC QUEST/MED QUEST/ MLY
make decisions about applications. These requests       QUEST/TOB QUEST – additional questionnaires
will generally be sent through our ICS system, and
you will receive an email about the additional          POLICY ISSUE
requests. The following lists describe some of the      Items that you will see when a policy is ready to be
more common requests you will see, along with a         issued.
brief explanation of what the item is.
                                                        CASE APP – The case has been approved by an
GENERAL UNDERWRITING                                    underwriter.
REQUIREMENTS                                            APD CHGS – The case has been approved but with
These are items that are either ordered on every        some changes.
product or on certain products, depending on            SPL CLS – The case has been issued on a special
coverage amounts. These include medical and             class basis which means a table rating.
income documentation.
                                                        DELIVERY REQUIREMENTS
MIB – medical information                               Items will need to be signed and/or returned to us in
ScriptCheck – prescriptions the insured may have        order to have the policy activated.
PARAMED – paramedical exam                              AMD APP – amendment to the application
BLOOD PR/SMA – blood profile                            BAL PREM – initial or balance of initial premium
HOS – urinalysis                                        E-1A – policy amendment rider (exclusion form)
TELE INT – telephone interview                          POL DEL/DC-64 – delivery certificates depending
APS – attending physician’s statement                   on product and state
W2/TAX RTNS/PAY STUBS – tax information and             SIGN ILLUS – signed illustration required on fully
pay stubs to verify income                              underwritten whole life cases
AUTH – HIPAA-compliant medical release                  PAC/VD CK – signed PAC authorization and voided
authorizations                                          check
MVR – motor vehicle record                              STE HLTH – statement of good health
REPL FRM – replacement forms required if                ORIG POL – original policy required for reissues
intending to replace a policy
UND CORR – underwriting correspondence
detailing additional information needed

For agent use only.                                                                                             4
To assist in having your calls, faxes and emails routed to the proper location, refer to these important numbers:
                         All Assurity departments can be reached at: 1-800-276-7619
                                    Underwriting Contact Center: ext. 4264
                               Fax numbers: 402-437-4606 (pending requirements)
                                            402-437-4591 (new applications)
                Brokerage Sales: ext. 4275                             Employer Unit: ext. 4210
                Fax number: 402-437-3404                               Fax number: 402-437-3886
                Email:                      Email:
                Client Services: ext. 4279                             Contracting: ext. 4689
                Fax number: 402-437-4658                               Fax number: 402-437-4640
                Email:                     Email:
                Commissions: ext. 4427                                 Help Desk: ext. 4333
                Fax number: 402-437-4558                               Fax number: 402-437-3810
                Email:                           Email:
                Claims: ext. 4484                                      Supplies: ext. 4447
                Fax number: 402-437-4592                               Fax number: 402-437-4590
                Email:                          Email:

                 Overnight Mailing:                                            General Mailing:
           Assurity Life Insurance Company                              Assurity Life Insurance Company
                     1526 K Street                                               PO Box 82533
                  Lincoln, NE 68508                                         Lincoln, NE 68501-2533

                                  Newsletter Committee Members
                 Jane Ahl                    Melanie Glinsmann                     Christy Snelling
               Kim Bowman                      Renae Logan                         Carol Thompson
                Sarah Floyd                   Bruce McKeag

For Agent Use Only.                                                                                                 5

To top