Wednesday, September 21, 2016

Helpful Hints in Completing a Life Insurance Application

By 
Lorrie Elson, Manger – Life Case Operations, InForce Solutions
Kim Cohen, Manager Business Operations, InForce Solutions

In 2015, Ann Arbor Annuity Exchange announced an exciting new partnership with InForce Solutions (IFS) to provide our life insurance producers additional services and opportunities. One of the primary functions of IFS is to ensure that life insurance case management is completed in a more timely and efficient manner. From the moment you take the application until the moment the policy is delivered, AAAE and IFS facilitate the underwriting, follow-up on requirements, and any other “back-office” work. In keeping with this partnership, we asked IFS to share some tips on how to properly complete a life insurance application.

Life insurance applications are complicated, and it can be easy to inadvertently make mistakes or omit required information. To help you prevent delays in application processing, it is useful to be familiar with some of the most common errors/missed items that we see at InForce Solutions:
  1. Contracting – Are you contracted with the carrier and appointed in the application state? If the answer to the question is yes, be sure that you are using the correct agent number. With Ann Arbor Annuity Exchange’s recent partnership with InForce Solutions, some agent numbers have changed, so be sure you have the right number. 
  2. Signed Illustration/Illustration Certification Form – Insurance carriers are pushing for a signed illustration or certification form for UL and IUL products prior to the issue of a policy. Providing one of these options upfront with an application will help get the policy issued more quickly. Submitting a full illustration assists the underwriter by providing them with information on how the product was presented.
  3. Correct Signatures – Be sure to get the correct signatures on all forms that require them. If an individual other than the insured is the owner of the policy, both the owner and the insured need to sign the forms. This can be doubly confusing when submitting a juvenile policy. Carriers vary slightly on the age, but typically if a minor is over the age of 15, they need to sign as the insured in addition to the parent/guardian signing as both the insured and owner.
  4. Replacement Questions/Form(s) – This is a huge potential pitfall when submitting an application. Every application asks whether the client has existing life insurance or annuities in force and if they will be replacing any of those policies. States that follow the NAIC Model Regulation require a replacement form if the insured has existing life insurance or annuities in force, regardless of whether or not they are replacing. Also, these replacement forms must be signed and dated by the insured/owner on or before the application date. Be sure to fill out the form(s) completely and include existing policy numbers where/when appropriate.
  5. Other Missed Elements – On HIPPA/HIV forms, indicate the client’s date of birth, then sign and date where appropriate. On applications, include the specific product and face amount the insured is applying for. On agent report pages, fill out completely for every application submitted.
Not sure if your application is completed properly? Our Case Managers Paula Shelton (ext. 190) and Kim Cox (ext. 189) of InForce Solutions can help. Give them a call at 800.321.3924 for any questions you may have.

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Designed for Financial Professionals.

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