The COVID-19 pandemic has made life insurance sales significantly more complicated, largely due to patients’ inability or reluctance to complete paramedical exams. Luckily, American National Insurance Company (ANICO) has instituted several temporary underwriting changes to make approving life insurance applicants an easier process throughout the coronavirus crisis.
Temporary Underwriting Changes to Accelerated Underwriting Programs
Many of the temporary changes deal with ANICO’s accelerated underwriting programs: Xpress and Xpress Plus.
The Xpress program, formerly known as Underwriting Xpress, is open for both paper and electronic apps for those aged zero to 65 applying for less than $250,000 in coverage. This process deals with both standard and substandard underwriting classes. Temporary underwriting changes to the Xpress program include that those aged 50 and under who need paramedical exams due to their Life Risk Classifier (LRC) results are eligible for auto-approval, but not at the best available rate. For any applicants with specific medical conditions, ANICO will accept alternative medical data as a replacement for the medical exam.
The Xpress Plus program is open to those aged 18 to 60 who apply electronically for coverage amounts between $250,000 and $1 million. The process can be used for standard, standard plus, preferred, and preferred plus classes. Temporary underwriting changes to the Xpress Plus process include that those aged 50 and under who need a paramedical exam solely for their LRC results can use alternative medical data as a replacement. This will result in standard or best rates for many Xpress Plus applicants. Like in the Xpress program, Xpress Plus applicants with specific medical conditions may submit alternative medical data in lieu of an exam.
Reconsidered Rate Classes
Once the pandemic begins to die down and life starts to return to normal, rate classes may be reconsidered after applicants complete a traditional paramedical exam. Additional underwriting changes include mandatory good health statements on delivery for applicants aged 70 and up, a mandatory waiting period for those who have traveled recently or will travel soon, a temporary hold on all applications where the applicant is 80 years old or more, and a hold on any applications of individuals being considered at a table 4 rating or greater.
Expectations for Underwriting Changes
During the pandemic, ANICO’s underwriting team is at full capacity and working remotely in order to continue their high-volume, high-quality underwriting procedures. The number of applications coming in has held steady. So far, 99 percent of applications received still meet ANICO’s two-day service agreement on their accelerated underwriting programs. Along with maintaining its efficient underwriting process, ANICO is also reviewing all pending applications received prior to April 1 with these new temporary parameters.
With these new parameters in place, ANICO estimates that it can approve 90 percent of applicants between ages zero and 50 applying for less than $250,000, and 70 percent of applicants in the same age range applying from between $250,000 and $1 million.
To view a webinar explaining these benefits, see ANICO’s recent statement regarding the changes in their underwriting processes.
Agents
We hope this information on ANICO’s temporary underwriting changes for the COVID-19 pandemic is helpful to you.
Empower Brokerage is dedicated to helping you educate your clients on the insurance they need and staying on top of their health. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans. We want you to be successful. Give us a call if you have any questions 888-539-1633.
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