Diligence and teamwork help get the case placed

By Andrea Caruso

Crump Life Insurance Services

We recently received a life insurance application for a 60-year-old male seeking a $500,000 GUL policy with an $80,000 1035 exchange. It was a replacement policy which the producer illustrated at preferred rates during solicitation based on information provided by the client and supported by the producer’s field underwriting experience.

There was no adverse medical history noted on the paramed exam. The client did engage in aviation, but had enough experience and hours logged to qualify for coverage without a flat extra. We expected the client to be eligible for standard or better pricing.

However, during the underwriting process, the case was postponed by the life insurance carrier due to thyroid nodules noted on a prior ultrasound. The carrier advised they would be able to reconsider with a follow-up ultrasound or a biopsy.

Upon review of the medical records, our underwriter noted the nodules in question had been stable since 2009. The next follow-up was scheduled for early 2013. The postponement seemed unusual to our underwriter, who felt the risk was insurable and should not require a rating, especially given the thyroid was of normal size with no palpable mass – the nodules could not be felt by the doctor’s hand during the exam.

The case had already been reviewed by a medical doctor at the carrier, but our underwriter argued there was enough stability to accept the risk and asked that the case be reviewed by another doctor or a more senior underwriter. The file was forwarded to a regional chief underwriter at the carrier who reviewed the records and agreed with the postponement. Our underwriter, still unsatisfied, again asked to have someone else review the case. The carrier underwriter obliged and within several days the case was offered at standard rates.

Our underwriter and the sales manager working the case informed the producer of the approval to see if the case could be placed. The producer was happy with the outcome, but asked to see if the carrier could improve the offer. He needed a better rate to close the gap between the preferred rates illustrated and the standard rates offered by the carrier.

Our sales manager and our underwriter asked the carrier wholesaler for help. We explained the numbers, noting to the carrier wholesaler that the difference in target premium between standard and standard plus was minimal. We also reminded the wholesaler of the replacement details and 1035 exchange. We further explained to the him that the difference from standard to standard plus was relatively small, but to the client, it would mean a great deal. In the end, the carrier returned exactly what we needed. Our diligence and teamwork paid off. We turned a postponed application into a standard plus premium and the case was placed.