Pekin Presentation

J. Mark Williams National Life Marketing Manager

David Coughlin Senior Sales Manager

PEKIN Partners

brings you

Financial Information

Assets 1.3 Billion

Capital and Surplus 125.4 Million

Invested Assets 1.2 Billion

Business Mentality

• Old School

• Underwriting is based on field underwriting

• Strongly believe in the agent physically seeing the client and taking the application

Loss Ratios

• Agents are expected to manage their book of business and maintain a reasonable loss ratio.

• Acceptable loss ratios would be 60% or below on a newer block of business eventually increasing as the block of policies ages maintaining an average of 73% or less

Underwritten Business Percentage

• Agents are expected to have a blend of underwritten and non-underwritten business.

Placement Rate

• The company wants to avoid a situation where an agent has a large amount of rejections.

• This typically happens due to a lack of understanding of the underwriting process or incomplete applications.

Underwriting Mentality

• The company is a field underwritten model vs a simplified issue model.

• Agent’s are expected to obtain all of the information necessary to underwrite the application

• There are no APS’s

• Therefore any questions regarding the insured’s health will be directed to the agent for clarification.

Application

Catalog of Products page 9 Uninsurable Impairments

Within 3 years-Heart Attack, Coronary Bypass Surgery, Angioplasty, and or stent replacement

Within 2 years-Stroke or more than one in a five year period

Ever- Cardiomyopathy, Hemophilia,

Heart and Circulatory Conditions

Underwriters typically are looking at whether a condition is under control and typically the longer the better

4A) Heart valve disease, carotid artery

disease, peripheral vascular disease,

coronary artery disease, angina,

cardiomyopathy, congestive heart failure, or

heart attack

4B) A stroke or transient ischemic attack (TIA,

mini-stroke)

4C) Heart surgery including angioplasty,

bypass, or stent placement or surgery for

carotid artery or peripheral vascular disease

Application 4D) Internal Cancer, leukemia, lymphoma,

melanoma, or multiple melanoma


Within 5 years-if treated by radiation or chemotherapy

Current-Internal Cancer (including Melanoma) if currently present

Within 3 years- surgery for cancer removal

Cancer

Application 4E) Diabetes, Parkinson’s Disease, Chronic

Kidney Disease, Alzheimer's Disease,

Dementia, Chronic Obstructive Pulmonary

Disease, Emphysema, Cirrhosis of the Liver.

Or Multiple Sclerosis


Emphysema- No Oxygen (typically recent diagnosis without any other chronic conditions)

Diabetes-NO Insulin (Typically the shorter time frame the better and can be a problem when combined with circulatory condition)

Parkinson’s Disease- Individual consideration (Typically recent diagnosis with no meds for the condition) (other health conditions typically a factor)

Other Chronic Illnesses

I would always call underwriting first before taking an application on Parkinson’s Disease or Emphysema

Above conditions are uninsurable except for Diabetes, Parkinson’s Disease , Emphysema

Application 4F) Alcohol and Drug Abuse


Current Treatment –Uninsurable

Recovery-at least two years without subsequent use as a general rule

Alcohol and Drug Abuse

Application 4G) Any mental or nervous disorder requiring

treatment (including hospital confinement) by a

psychiatrist, psychologist, counselor, or

therapist


Current Treatment –Uninsurable

Mental and Nervous Disorders

Previous diagnosis of Psychosis (insanity) is uninsurable

Application

5) Within the past two years have you been treated for

degenerative bone disease, crippling/ disabling or

rheumatoid arthritis or have you been advised to have a

joint replacement

Rheumatoid arthritis will be given individual consideration

if it is not crippling or disabling

6) Have you ever been diagnosed with or treated by a

physician or licensed medical professional for acquired

immune deficiency syndrome (AIDS) or AIDS related

complex

9) Do you need assistance or supervisions of any kind to

perform everyday living activities (such as: walking,

cooking, eating, personal hygiene, including toileting and

bathing, dressing, housekeeping or shopping.

10) Do you use any medical appliance such as a

wheelchair, walker, cane, or hospital bed.

11) Have you ever been advised that you may require

surgery but not had the surgery.

Knock Out Questions

Knock Out Questions

Application 7 and 8) Within the last 12 months have you consulted

or been treated by a physician or other medical

practitioner, been confined or has had confinement

recommended to a hospital, nursing home, home for

the aged, or any other institution or care center

Other Impairments

Name of Condition Diagnosis Date of diagnosis Tests performed Dates of treatments Medications prescribed Date treatment completed Any limitations in regular activities due to the impairment Current Condition Name and address of physician or health facility that will have the most complete records

The Catch All Questions

Application 12) Have you smoked cigarettes or used tobacco in

any form within the last 12 months? If you have quit

using tobacco, list the quit date_____________

Tobacco Use

Quit date does not apply

Other Uninsurable Conditions

• Addison’s Disease • Chronic Brain Syndrome • Crohn’s Disease • Ulcerative Colitis • Regional Enteritis (if severe) • Cushing’s syndrome • Leukemia • Lou Gehrig’s Disease • Lupus (disseminated or systemic) • Paget’s Disease • Heart Valve Replacement

These are relatively commonly encountered conditions. This is not a complete list of uninsurable conditions. Uninsurable conditions that rarely occur are not included.

Doctors and Prescription Drugs See Attached

See Attached

If you do not have enough space use a separate page Make sure to have the client date and sign the additional page or pages.

Effective Dating

• Do not submit applications more than 60 days from the effective date of the policy

• Backdated applications will not be accepted

• No other person including the spouse may sign on behalf of the proposed insured

Drafting of Premium

• First premium is drafted on issue

• For EFT, the withdraw date must be within 10 days of the effective date

Pre-Existing Conditions

• Policies are issued with a six month waiting period unless you provide proof you are replacing creditable coverage. If you qualify as an eligible person the waiting period will be waived

I would send evidence of creditable coverage with application

Submitting Business

• New Business

• Fax: 309-323-8440

• Email: [email protected]

• Mailing Address: Pekin Insurance c/o Heartland Financial Group 1600 NE Coronado Dr. Blue Springs, MO 64014

Contact Us: Bill Ellsworth – Vice President- HFG/Presenter – [email protected]

J. Mark Williams – National Life Marketing Manager – [email protected]

800-322-0160 Ext. 2194

Agency Services/Contracting-Licensing/Supplies

Sandy Stamper – [email protected] – 844-502-6781

Tamrah Starr – [email protected] – 844-502-6781

Underwriting

800-322-0160 ext. 2823 or 2537

Policy Owner Services 800-322-0160 ext. 2823 or 2718

Pekin Presentation

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Transcript of Pekin Presentation