Note: This is the seventh article in a series of 12 discussing the benefits of using the Laser Underwriting Approach, which utilizes an agency-based staff underwriter. Each story in the series addresses one of the 10 preliminary questions that make this approach effective.
The Laser Underwriter Approach yields accurate life insurance quotes and keeps the underwriting process smooth by asking these 10 key questions:
1. What is your client’s medical history, including conditions, treatments, or medications?
2. What is the amount of the application?
3. What is your client’s age, tobacco status, height, weight, and ability to live on his or her own?
4. Are you in competition? What are the other companies, face amounts, and ratings?
5. Do you have related applications with other companies? Did you already hurt your chances of getting the best offer?
6. Will your client accept an increased premium?
7. Are there any avocation, financial, aviation or legal concerns?
8. Is the amount of coverage appropriate for the client’s financial situation?
9. Are there any sensitive histories such as alcohol, drug, or motor vehicle problems?
10. What is the importance of this client to you, such as being a center of influence which could provide referrals?
Last time, we covered why it is not a good idea to send eight or 10 trial applications out at one time. Doing so saturates the reinsurance market and results in activity codes at the Medical Information Bureau, both of which may hurt your chance of getting the best quote from the best carrier for a particular risk.
In the Laser Underwriting Approach, the preliminary application is completed for the brokerage agency. The agency’s staff underwriter then analyzes the request, reviews medical records and chooses the one or two best companies for that particular risk based on his or her knowledge of what companies specialize in certain risks.
The staff underwriter can give you an idea of what rating may be put on this applicant’s risk. The underwriter can tell you, for example, that your applicant’s health condition will probably result in a Table D rating, which essentially means that your client would pay double the carrier’s standard premium rate.