was recently submitted for a 47-year-old male seeking $10 million of key person/buy-sell coverage. The client has a history of ankylosing spondylitis, an inflammatory disorder of the joints of the spine. It can cause severe pain, reduced movement and if left untreated, fusion of the joints. The client was treated with Remicade®, a medication that can compromise a person’s immune system and make him or her more susceptible to serious infections.
We received quotes of standard to table B from various carriers. This is the normal rating for a client who is being treated for ankylosing
spondylitis requiring treatment with Remicade®. We applied formally to one of the carriers who had offered standard. During the underwriting process
, the producer advised that the corporation purchasing the coverage on the client needed a lower rate in order to keep the $10 million face amount applied for. If we were not able to do better than standard, he would need to apply for a lesser amount of $2.5 million in order to keep within the corporation’s premium tolerance. This amount would only partially fulfill the insurance need.
Our underwriter reviewed the file again and asked the carrier underwriter to reconsider the file for a better rating. Our underwriter pointed
out that the client had no symptoms stemming from the ankylosing spondylitis in the ten years since his diagnosis. Furthermore, his course was mild and he was still very active, exercising on a regular basis. He was healthy otherwise and his labs and exam results bore this out. Lastly, he had tolerated the Remicade® extremely well without any side effects.
The carrier underwriter took all of the above, as well as the client’s overall medical history, into consideration and returned with an offer of super preferred
. This allowed the corporation the ability to increase the face amount to $15 million and resulted in a happy client and a policy that fully covered his business needs.