for producer use only – not for dissemination to the public. 1 underwriting update natalie...

1FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC.

Underwriting Update

Natalie Bergstrom

Director of Underwriting

FOR PRODUCER USE ONLY - NOT FOR DISSEMINATION TO THE PUBLIC.


Agenda

Focused Underwriting Teams Liberalized Standard Plus Competitive Underwriting Programs Improved International Underwriting Recent Changes and Enhancements Underwriting Playbook


UW Teams Focused on You

New Business Service Specialist

One Team for All Your Underwriting

Express ConciergeRelationship

• Transactional Term• Leverage Automation

• Term to Age 55 and $1,000,000 Face

• Transactional Term• Leverage Automation

• Term to Age 55 and $1,000,000 Face

• All non-Concierge and non-Express Business

• All non-Concierge and non-Express Business

• $15,000 Premium or

$3,500,000 Face

• $15,000 Premium or

$3,500,000 Face

Informals


Teaming with AG Sales Confirm informal receipt Offers followed up

Goals: 1) More comprehensive service

2) More placed cases

Improved Communication on Informals


Two Standard Classes

Standard Plus Standard NonTobacco (including up to Table B)


What does Standard Plus look like?

None in the last 12 months

None in the last 12 months

Tobacco Use

• Up to 250 with ratio of 7.0




Cholesterol & HDL Ratio

• Ages 0-60: Up to 150/92

• Ages 61+: Up to 160/92

• Ages 0-60: Up to 150/92

• Ages 61+: Up to 160/92

Untreated Blood Pressure

Up to 228 poundsUp to 228 pounds

Weight at 5’10”

•2 moving violations in the last 3 years

•No DUI/Reckless driving in 5 years

•2 moving violations in the last 3 years

•No DUI/Reckless driving in 5 years

MVR

• < Age 66: 1 parent death from heart disease or cancer prior to age 60

• Age 66+: N/A

• < Age 66: 1 parent death from heart disease or cancer prior to age 60

• Age 66+: N/A

Family History

Liberalized!

Liberalized!

New!



1 Peer competitors and their GUL products are: John Hancock UL-G, ING Guaranteed DB UL II, Lincoln LifeGuarantee® UL (2009), Transamerica TransACE® and MetLife Guarantee Advantage ULSM

2 John Hancock UL-G is at Standard Plus, all others are at Standard Nontobacco

JoeAge: 50

Height: 6 feet

Weight: 240 lbs

Needs: $1 million of life insurance

Product: AG Secure Lifetime GUL®

Standard Plus Annual Premium $10,558

Average of our peer competitors1,2 $11,716

An annual savings of: 9.88%

Build

Liberalized



1 Peer competitors and their GUL products are: John Hancock UL-G, ING Guaranteed DB UL II, Lincoln LifeGuarantee® UL (2009), Transamerica TransACE® and MetLife Guarantee Advantage ULSM

2 John Hancock UL-G is at Standard Plus, all others are at Standard Nontobacco

DavidAge: 55

Tobacco: Quit one year ago

Needs: $1 million of life insurance

Product: AG Secure Lifetime GUL

Standard Plus Annual Premium $14,210

Average of our peer competitors1,2 $15,362

An annual savings of: 7.50%

Liberalized

Tobacco Use


Programs to Improve Underwriting Offers

Help your clients

get an upgrade on their rating

Help your clients

get an upgrade on their rating

Better Choice Preferred


Preferred Offsets

Preferred Offsets

Healthy CreditsHealthy Credits



Many impairments can still get BEST CLASS Asthma Anxiety Depression Sleep Apnea Arrhythmia Epilepsy Crohn’s Liver Enzymes


Preferred Offsets

Offsets for:• Build• Family History• Cholesterol

• Example: 10 - 12 pounds over can get BEST CLASS


Healthy Credits

1 Table or 1 Preferred Class upgrade

4 out of 16 Healthy Credits can improve a case

All Products

Ages 41 – 70

Face Amounts Through $60 million


Certain Healthy Credits vary by age and credits may not be available for test performed on younger individuals. Healthy Credits may have additional time frame criteria required before they can be used to improve a rating.

Possible Healthy Credits


Case Study

Age: 60

Needs: $20 million AG Secure Lifetime GUL

History: Family History and Crohn’s disease

1) Better Choice Preferred Move to Standard Plus

2) Preferred Offsets Move to Preferred NT

3) Healthy Credits Move to Preferred Plus

Standard Rate: $402,362

Preferred Plus Rate: $206,651

Savings: $195,711

Bill

49% Savings


International Underwriting

It’s a Small World


Foreign Travel

Best Class for up to 8 weeks of travel to more than 200 countries around the globe.

Includes destinations in Asia, Africa, Central and South America, and the Middle East.


Foreign Nationals

48 Approved Countries Foreign Nationals and Visa Holders Examples include: Argentina, Brazil, Colombia,

China, Hong Kong, Mexico and Venezuela


Foreign NationalsApproved Countries*

A

Argentina

Australia

Belgium

Brazil

Canada

Chile

Costa Rica

Ecuador

France

Germany

Hong Kong

Italy

Panama

Peru

Poland

Singapore

South Korea

Spain

Switzerland

Taiwan

UAE

United Kingdom

Uruguay

B

China

Dom Republic

India

Israel

Jamaica

Malaysia

Mexico

Malaysia

Philippines

Russia

South Africa

Turkey

C Honduras Saudi Arabia Venezuela Vietnam

D Colombia

* See Foreign National Guidelines for a complete listing


Foreign NationalsRate Class & Coverage Amounts

Country Code Rate Class

Coverage Amount*

Term Permanent

A Best Class $3,500,000 $10,000,000

B Standard Plus $3,500,000 $10,000,000

C Std Plus and $2/1000 $3,500,000 $3,500,000

D Std Plus and $3/1000 $2,000,000 $2,000,000

* Additional coverage may be available through reinsurance


Recent Underwriting Changes

Fewer Financial Questionnaires FQ no longer required through $3 million (ages 18-70) Replaced the Expanded FQ with the shorter FQ

Fewer Inspection Reports IR no longer required through $5million (ages 18-55)

Fewer MD Exams No longer required at ages 71+ until over $1 million We can still use a Paramed and a recent APS information in lieu

of an MD exam for any age or face Added Tax Transcripts (4506T-EZ)


Tax Transcripts (4506T-EZ)

Routine in the banking and mortgage business Growing trend in Life Insurance

Quick and Easy One-page form 48 hour turnaround time

Limits: Over $1,000,000 for ages 18-66 Over $500,000 for ages 67+

Allow us to maintain competitive premiums and reduce Inspection Reports and Financial Questionnaires


Other Important Enhancements

Elevated Hemoglobin A1C Possible Standard on A1C < 6.4

Use Telephone Interviews to reduce APS orders on:

Sleep Apnea Rx Clarify

Asthma Seizures

Arthritis Colitis

Drug/Alcohol Bariatric Surgery

Ignore Gender-Specific Cancer Family History Example: Male client / Mother died from Uterine Cancer

Ignore All Family History over age 65

22


One Stop Shop UW Playbook


Field Underwriting Guide

Updated!


Underwriting Impairment Library


Important Information

Policies issued by:American General Life Insurance Company (AGL)2727-A Allen Parkway, Houston, TX 77019AG Secure Lifetime GUL Policy Form Numbers 10460, ICC-10460

The United States Life Insurance Company in the City of New York (USL)One World Financial Center, 200 Liberty Street, New York, NY 10281AG Secure Lifetime GUL Policy Form Number 10460N

The underwriting risks, financial and contractual obligations and support functions associated with the products issued by AGL or USL are the issuing insurer’s responsibility. Guarantees are subject to the claims-paying ability of the issuing insurance company. USL is authorized to conduct insurance business in New York. Policies and riders not available in all states. American General Life Companies, www.americangeneral.com, is the marketing name for a group of affiliated domestic life insurers, including AGL and USL.

©2012. All rights reserved.

AGLC106258

for producer use only – not for dissemination to the public. 1 underwriting update natalie...

Documents

producer use

standard classes standard

liberalized tobacco

liberalized slide

standard rate

playbook slide

possible healthy credits

preferred plus rate