Inventive Underwriting from The Hartford

Transcription

1 INDIVIDUAL LIFE INSURANCE Inventive Underwriting from The Hartford Great Inventions Make LIFE Better. NOT FOR USE WITH THE PUBLIC

2 History is filled with inventors whose great minds stretched the common thinking of the day to create extraordinary breakthroughs that have made life better. Imagine modern life without engines, electric lights, airplanes and telephone, for instance. In the spirit of these inventions and countless others that have changed the way we think, work and live, The Hartford has created a package of underwriting enhancements designed to change the way you look at life insurance. These initiatives make the underwriting process more convenient, less intrusive and more responsive to individual circumstances. By streamlining requirements and leveraging modern medical knowledge, we are able to provide your clients our best offers, as quickly as possible. After all, great inventions make LIFE better. The Hartford is The Hartford Financial Services Group, Inc. and its subsidiaries, including the issuing companies of Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company. Our Inventive Approach to Underwriting Has: Launched a program to offer many breast-cancer survivors Standard rates. Launched a program to offer many prostate-cancer survivors Standard rates. Increased our Standard offers through an Enhanced Standard upgrade program. Increased our Preferred offers by liberalizing criteria. Reduced requests for Attending Physicians Statements. Eliminated the treadmill stress test for almost all cases. Improved programs for foreign nationals and travelers. Through constant research and re-evaluation, these initiatives will keep evolving to take advantage of current data and medical advances. NOT FOR USE WITH THE PUBLIC 1

3 The Hartford also issues life insurance on an age last birthday basis, which may give you an advantage against age nearest birthday companies. A younger issue age can mean more competitive premiums. Enhanced Standard (Table 3 to Standard) Table ratings increase premiums for some clients due to certain health impairments. With The Hartford, these clients can be rated as high as Table 3 and still be issued a Standard class policy within the program parameters. Enhanced Standard is available for issue ages up to 80 on Stag Protector II and Stag Accumulator II variable universal life, as well as Stag Whole Life. The policy face amount may be up to $10 million for those age 70 and younger at issue, up to $5 million for issue ages 71 through 80. The program is also available to issue age 70 on Hartford Quantum II VUL, Hartford Advanced UL, Stag UL and Hartford UL CV. It is offered to issue age 70 for one life on a Hartford Advanced Last Survivor UL policy. For these products, policies with face amounts up to $10 million qualify. THOMAS SAVERY PATENTED THE FIRST STEAM ENGINE, BASED ON A PRESSURE COOKER, CIRCA NOT FOR USE WITH THE PUBLIC

4 UW brochure 3/21/2006 8:22 AM Page 5 Aggressive Guidelines on Many Health Impairments The Hartford has adopted a set of underwriting guidelines that is aggressive on many health histories, including among other impairments, height and weight combinations, diabetes, heart disease and sleep apnea. ALEXANDER GRAHAM BELL INVENTED THE TELEPHONE IN 1876, BEATING ANOTHER INVENTOR, ELISHA GRAY, TO THE PATENT OFFICE BY HOURS. NOT FOR USE WITH THE PUBLIC 3

5 The following hypothetical scenarios are all Standard issues, assuming no additional adverse underwriting considerations, illustrating the power of combining The Hartford s underwriting guidelines and Enhanced Standard program to deliver your clients a competitive offer. 60 year old, heart attack 3 years ago, currently active, no symptoms, recent negative stress test, good cholesterol and blood pressure, an aspirin a day. 71 year old, same history, but three-vessel bypass two years ago and a normal, recent GXT scan or GXT echo. 50 year old with moderate sleep apnea, 60 lbs. overweight. 50 year old with Type 2 diabetes for 12 years, controlled with medication. No Treadmill Requirement for Most Clients The Hartford has torn down a major roadblock for many cases, setting a new standard with one of the most liberal treadmill requirements in the industry. We ve eliminated routine treadmill requirements for: Everyone up to age 55. Nicotine users age 56-70, for all face amounts up to $5 million on a single life, $10 million last survivor. Non-nicotine users age 56-70, for all face amounts up to $10 million, single life and last survivor. In addition, a treadmill test is generally not required for clients age 71 and older. That s one less inconvenience for your clients and one less potential hold-up for policy issue. Please note, a treadmill test may be requested on face amounts of $25 million or more. 4 NOT FOR USE WITH THE PUBLIC

6 Prescription History Replaces APS on Certain Cases The ordering and delivery of Attending Physicians Statements (APS) are a significant time drain on the life insurance issue process. For many healthy individuals, The Hartford may instead evaluate an applicant s prescription history. If the individual has not taken any prescriptions of significance, underwriting will typically not order an APS. This initiative applies for clients without a significant medical history who are age 40 and younger and applying for $2 million or less in coverage, or age 41 to 60 and applying for $1 million or less. For these clients, an APS will only be ordered if the applicant s prescription history can not be obtained, or if the analysis reveals a prescription of note. Making Insurance More Accessible for Older Ages For healthier clients over age 71, The Hartford offers liberal criteria, helping more of these clients qualify for a Preferred policy. Our Preferred criteria for this age group includes: Blood pressure up to 150/90, treated or untreated. Liberal weight limits allowed for almost every height class. Total cholesterol between 160 and 300, treated or untreated. [Ratio of total to HDL (good) cholesterol must be 6.5 or less.] Serum Albumin (a measure of liver function)of at least 3.7. Poor family medical history is not a factor in this age group. These clients have proven their longevity. Clients will still need to meet the remaining Preferred criteria, including but not limited to: favorable driving record; no ratable hazardous activities; no drug or alcohol abuse history; and no history of cancer, diabetes, or cardiovascular disease. On the other end of the spectrum, older clients who have significant health histories may still qualify for a life insurance policy. IN 1879, THOMAS EDISON CREATED THE FIRST COMMERCIALLY VIABLE INCANDESCENT LIGHT. NOT FOR USE WITH THE PUBLIC 5

7 Liberalized Underwriting of Certain Breast Cancers Thanks to the latest treatments, the survival rates of those with breast cancer are getting better and better. In recognition of this fact, The Hartford has implemented an aggressive, innovative approach to underwriting many clients who have certain early stage breast cancers. The Hartford may offer a Standard-class policy to clients, age 40 and older, who have small, well differentiated, localized Stage 1 breast cancer with a strong prognosis for survival based on the results of common tests. In all, The Hartford expects that up to 15% of all applicants who have Stage 1 breast cancer will be offered our Standard class. Total in-force and applied-for coverage through The Hartford s issuing companies can not exceed $5 million. Liberalized Underwriting of Certain Prostate Cancer Prostate cancer is diagnosed in 230,000 Americans every year, but like most cancers, survival rates are improving. As a result, prostate cancer survivors can qualify for Standard life insurance rates, without postponement, assuming an otherwise healthy medical history, provided they are age 60 and older with surgically treated cancer found to be confined to the prostate. Additionally, they must exhibit a Gleason score, a common assessment, of 6 or less, a pre-treatment PSA of 10 or less; clear surgical margins (cancer-free cells surrounding removed cancer) and no perineural involvement (no cancer within nerve cells). Total in-force and applied-for coverage through The Hartford s issuing companies can not exceed $5 million. Based on a review of National Cancer Institute statistics, The Hartford found that up to 25% of prostate cancer patients may qualify. Previously these men had a two- to three-year waiting period and would then be charged a temporary extra premium amount. Flexible Exam Options for Ages Since many seniors take great care of themselves, The Hartford is also offering flexible options for fulfilling medical exam requirements. Now, for face amounts up to $5 million at ages and up to $1 million for ages 76-85, not to exceed The Hartford s retention on a single life, clients have options. Normal requirements can be ordered (MD exam, blood, urine, EKG) based on age and face amount, OR If your client had a complete physical exam from their regular attending physician within the previous 6 months, we can review a complete copy of the APS for overlap with normal age and amount requirements. We ll then request the bare minimum requirements needed to complete the exam process. For some clients, there may be no further requirements needed. For amounts from $2,500,001 to $5 million, an oral fluid test will be required in addition to the APS. 6 NOT FOR USE WITH THE PUBLIC

8 Faster Issues with Fewer Requirements The Hartford offers reduced life insurance underwriting requirements in three key areas, easing the process and speeding your business. Through our programs, we have: Eliminated all Personal History Interviews (PHIs) on face amounts up to $1 million. Eliminated routine Motor Vehicle Reports (MVRs) for those ages on face amounts up to $1 million. Replaced many Attending Physicians Statements (APSs) with telephone questionnaires. With fewer, more streamlined requirements, we re issuing more policies faster than ever before. Temporary Insurance Agreement (TIA) Allowed on Policies up to $5 Million The Temporary Insurance Agreement may be used to allow premium to be collected upon application for policies with face amounts up to $5 million. The TIA provides a death benefit should the applicant die during the underwriting process. The maximum liability under the TIA is at the lesser of the applied-for amount or $1 million. Additional state restrictions may apply. Foreign National Program Foreign nationals who spend time and have significant assets in the U.S. may be great prospects for growing your business through life insurance sales. Maximizing the transfer of wealth to the next generation is a universal objective that extends throughout the world, and U.S. income tax-free death benefits may be attractive, depending upon applicable tax law. Through The Hartford s Foreign National Program, we can offer Standard class policies to citizens of many countries. If you have a client residing in a country not listed below, please contact your Hartford representative for availability information. Additional restrictions may apply. AFRICA: Canary Islands ASIA/PACIFIC RIM/AUSTRALIA: Australia, Hong Kong, Japan, New Zealand, Singapore, Taiwan, Tazmania NORTH AMERICA/CENTRAL AMERICA/SOUTH AMERICA: Canada, Chile, Costa Rica, Mexico CARIBBEAN ISLANDS: Bahamas, Bermuda, Cayman Islands, Virgin Islands EUROPE: Andorra, Austria, Belgium, Denmark, Finland, France, Germany, Gibraltar, Greece, Greenland,Guernsey, Holy See, Iceland, Ireland, Italy, Jersey, Liechenstein, Luxembourg, Malta, Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, United Kingdom NOT FOR USE WITH THE PUBLIC 7

9 Available Coverage for Foreign Travelers U.S. and Canadian citizens who visit countries viewed as perilous for travelers are commonly denied life insurance coverage by many companies. With The Hartford s Foreign Travel Exclusion Rider, these clients may obtain the life insurance coverage they need. Coverage provides full death benefit protection that is excluded only during times of travel to, from, or in restricted countries, or if death occurs as a result of an illness or injury sustained during such travel. Applicants must be at least 18 years old and residing citizens in the United States or Canada. Some green card holders who maintain permanent residence in the U.S. may also be eligible. Travel must be limited to a maximum of 30 cumulative days a year to any nation(s) not commonly considered for coverage. The rider can be issued on Stag Accumulator II, Stag Protector II, Hartford Quantum II VUL, Stag UL, Hartford Advanced UL and Stag Whole Life policies with face amounts up to $10 million. Additional restrictions may apply. Not available in all states. Travel to Israel Allowed on Standard Issues Short-term travel to Israel for vacation, family visitations and business meeting may now be accepted at Standard rates. Travel may not exceed 31 days annually, and travel to the West Bank and Gaza is excluded. Additional restrictions may apply. Wilbur and Orville Wright invented the flying machine in 1903, when they successfully took to the sky nine months after filing a patent. 8 NOT FOR USE WITH THE PUBLIC

10 Underwriting Requirements Chart Ages 0-15 Ages Ages Ages Ages $300,000 NM Amounts $300,001 - $500,000 $500,001 - $750,000 $750,001 - $1,000,000 NM HOS (HIV) PM HOS (HIV) PM/ MVR PM/HOS BLDPF PM/HOS/ BLDPF/ EKG $1,000,001 - $2,000,000 PM/HOS BLDPF PHI PM/HOS BLDPF PHI/MVR PM/HOS BLDPF/EKG PHI/MVR $2,000,001 - $3,499,999 PHI PHI/MVR EKG/ $3,500,000+ IR IR MVR RESTING OR TREADM I Treadmill EKG Requirements Age Single Life Last Survivor 0-55 none none $5,000,001 (nicotine) $10,000,001 (nicotine) $10,000,001 (non nicotine) $10,000,001 (non nicotine) 71 + UNDERWRITER REQUEST UNDERWRITER REQUEST Resting EKG Requirements Age Resting EKG 0-30 none $1,000, $500, $300, All face amounts NOT FOR USE WITH THE PUBLIC 9

11 Ages Ages Ages 71 + PM/ EKG PM/ EKG/MVR* PM/SR EXAM/HOS BLDPF/EKG/MVR* PM/SR EXAM /EKG/MVR* Key BLDPF Fasting blood profile MVR Motor vehicle report EKG Electrocardiogram NM Non medical GXT Treadmill electrocardiogram PHI Personal history interview HOS Home office specimen PM Paramedical exam IR Commercial inspection report SR EXAM Senior exam supplement Physician s exam PM/ EKG /EKG EKG/MVR** /SR EXAM EKG/MVR** //EKG PHI MVR /SR EXAM /EKG PHI/MVR / PHI/MVR /SR EXAM EKG/PHI/MVR / ILL EKG (see chart below) /MVR /SR EXAM /RESTING OR TREADMILL EKG (see chart below) IR/MVR For use with the following Hartford life insurance products: Stag Accumulator II Stag Protector II Hartford Quantum II Stag UL Hartford Advanced UL Hartford Advanced Last Survivor UL Stag Whole Life Hartford UL CV Add all in force Hartford Life Insurance Company, Hartford Life and Accident Insurance Company, and Hartford Life and Annuity Insurance Company coverage issued in the last two years to the amount applied for. Age Specific Requirements * MVR required for fully underwritten insureds ages 65 and older. ** MVR required for fully underwritten insureds ages 61 and older. Regardless of age, amounts in excess of $25 million may require treadmills and/or chest x-rays, depending on circumstances. Consult your Underwriter. 10 NOT FOR USE WITH THE PUBLIC

12 Issuers: Hartford Life Insurance Company (New York) Hartford Life and Annuity Insurance Company (Outside New York) 200 Hopmeadow Street, Simsbury, CT Mailing address for both issuers: P.O. Box 2999, Hartford, CT Principal Underwriter and Distributor for Variable Universal Life Insurance Products: Hartford Equity Sales Company, Inc. (HESCO) P.O. Box 2999, Hartford, CT This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice. Sale of a variable universal life insurance product requires the use of the appropriate and current product prospectus and underlying funds prospectus and appropriate product information, which can be obtained through your regular supply channel or by logging on to The prospectus contains detailed information including investment objectives, risks, and charges and expenses of variable life insurance and its underlying funds. The Hartford is The Hartford Financial Services Group, Inc. and its subsidiaries, including the issuing companies of Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company. Stag Protector II Variable Universal Life is a flexible premium variable universal life insurance policy. When issued outside of New York by Hartford Life and Annuity Insurance Company, the policy form number is LA-1238(03). When issued in New York by Hartford Life Insurance Company, the policy form number is HL-15894(03)(NY). Stag Accumulator II Variable Universal Life is a flexible premium variable universal life insurance policy. When issued outside of New York by Hartford Life and Annuity Insurance Company, the policy form number is LA-1240(03). When issued in New York by Hartford Life Insurance Company, the policy form number is HL-15898(03)(NY). Hartford Quantum II is a flexible premium variable universal life insurance policy. When issued outside of New York by Hartford Life and Annuity Insurance Company, the policy form number is LA-1271(05). When issued in New York by Hartford Life Insurance Company, the policy form number is HL-15935(05)NY. In certain states, the policy form number may be followed by a state abbreviation. Not all product features are available in all states. The prospectus and contract will reflect the appropriate issuing company. Stag Whole Life is a non-participating whole life insurance policy. The policy form number is LA-1215(03). Stag Universal Life is a flexible premium universal life insurance policy. When issued outside of New York by Hartford Life and Annuity Insurance Company, the policy form number is ILA When issued in New York by Hartford Life Insurance Company, the policy form number is HL-14917(NY). In certain states, the policy form number may be followed by a state abbreviation. Hartford Advanced UL SM is a flexible premium adjustable life insurance policy. When issued outside of New York by Hartford Life and Annuity Insurance Company, the policy form number is LA-1252(04). When issued in New York by Hartford Life Insurance Company, the policy form number is HL-15908(04)(NY). In certain states, the policy form number may be followed by a state abbreviation. Not all product features are available in all states. Hartford Advanced Last Survivor UL is a flexible premium last survivor universal life insurance policy. When issued outside of New York by Hartford Life and Annuity Insurance Company, the policy form number is LA-1264(05). When issued in New York by Hartford Life Insurance Company, the policy form number is HL-15925(05). Hartford Universal Life CV is a flexible premium adjustable life insurance policy. When issued outside of New York by Hartford Life and Annuity Insurance Company, the policy form number is LA-1203(02). When issued in New York by Hartford Life Insurance Company, the policy form number is HL-15859(02). When issued in Louisiana, the policy form number is LA-1203(05)(LA). When issued in New Jersey, the policy form number is LA-1233(03)(NJ). When issued in Vermont, the policy form number is LA- 1244(03)(VT). In certain states, the policy form number may be followed by a state abbreviation. Not all product features are available in all states. LCM Printed in U.S.A 2006 The Hartford, Hartford, CT NOT FOR USE WITH THE PUBLIC