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Connecting the Financial Dots

Connecting the Financial Dots. Tom Webb Director, Underwriting American General. April , 2013. September 13, 2012. Does financial underwriting really matter?. What percentage of claims over a million dollars has a financial component?.

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Connecting the Financial Dots

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  1. Connecting the Financial Dots Tom Webb Director, Underwriting American General April , 2013 September 13, 2012

  2. Does financial underwriting really matter?

  3. What percentage of claims over a million dollars has a financial component?

  4. What percentage of every term premium dollar is allocated to claims?

  5. Term Insurance – 60% of every premium dollar goes to cover claims-- Even small changes can have significant a impact to profitability A 2% reduction in claims results in a 25% increase in profitability Distribution of Term Premium

  6. What are the dots?

  7. Data Financial Data - Income, and Net Worth Beneficiary data – Insurable Interest In force Data – Total Line justification Ownership Data – Business component Historical data – Prior applications, Bankruptcy, other applications Effect Sets the Stage Eliminates Amendments Faster Issue Smooth Claims process

  8. Financial Supplement State Filed Specific information Breakdown of Finances Confirms Data portion of Application Effect Part of the policy Greater Justification Ties case information together

  9. Cover Letter Who writes the letter? What do you include? Where? When do you write a cover letter? Effect Writing agent and sometimes BGA Anything that needs clarifying or explaining Attach to application Whenever the case is important to you!

  10. Inspection Report Carrier Specific Medical and Financial Older Ages Can be confirmed Effect Does it match? ADL’s and Cognitive Taped

  11. Internet Esearch-comprehensive search of public information on an applicant Google, Zillow Credit Report Social Security Effect Verify property values, addresses, and ownership reported by the primary insured on the application. Expanded and more comprehensive credit information Detailed judgment, tax lien information, pending legal actions, foreclosures, and criminal activity Confirms valid number

  12. 4506T – Tax Transcript IRS form Personal Confidential Brief Effect Fast Two years of basic data Common form Only personal All US Citizens/Permanent Residents should file a tax return. Foreign nationals/ visa holders require a comparable independent source of financial information (i.e., brokerage statement)

  13. Questions?

  14. Tom Webb, FLMI Managing Director American Generaltom.webb@aglife.com 804-281-7567

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