2014 Individual Life Insurance Service Turnaround Times Survey. Report Prepared for:

Transcription

1 2014 Individual Life Insurance Service Turnaround Times Survey Report Prepared for: Corp For questions or additional Information, please contact: Angie Norman Senior Associate LOMA 6190 Powers Ferry Landing, Suite 600 Atlanta, Georgia United States Copyright 2014, LL Global, Inc. All rights reserved. This text or any part thereof, may not be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, storage in an information retrieval system or otherwise, without the prior written permission of the publisher.

2 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America FINAL REPORT This report prepared for: Corp Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 2

3 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America This report prepared for Corp Table of Contents Section 1 Participating Companies Page 4 Section 1 Company Organization Structure Page 5 Section 1 Product Mix Pages 6-10 Section 1 Distribution Channels Page 11 Section 1 Technology & Automation Pages Section 1 Electronic Applications Page 14 Section 2 Not In Good Order Service Issues Pages Section 3 New Business Case Distribution & Placement Rates Page Section 3 New Business & Underwriting Processing Times Pages Section 3 Source of Application Submissions Page 42 Section 3 Underwriting Service Times for Specific Cases Pages Section 4 Policy Owner Service Functions-Elapsed Times Pages Section 5 Turnaround Time Tracking Methods Pages Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 3

4 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Participating Companies (31 Companies) AAA Life Insurance Company Alfa Life Insurance Corp Allianz Life Insurance Company American Family Life Insurance Company AXA Catholic Financial Life Columbus Life Insurance Company COUNTRY Financial CUNA Mutual Group Department of Veterans Affairs Farm Bureau Insurance Co. of Michigan Farmers New World Life Insurance Co. Foresters Gerber Life Insurance Company Government Personnel Mutual Life Insurance Co. Grange Life Guardian Life Insurance Co. of America Illinois Mutual Lafayette Life Insurance Company Liberty Life Assurance Co. of Boston MassMutual MetLife Nationwide Financial Ohio National Financial Services Principal Financial Group Securian Financial Group State Farm Life Co. Symetra Financial Texas Life Insurance Company Voya Financial Western & Southern Life Insurance Co. Non US currencies in this report were converted to United States dollars based on conversion rates in August 2014 at Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 4

5 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 1A Company Profile Data This report prepared for Corp Company Profile Data - Organization Structure Type of Insurance Company Organization Corp Stock Company Mutual Company Fraternal Other Other Includes: IMPORTANT NOTES: *Averages in the following tables are the simple averages calculated from the companies submitting this data. *Median is the middle figure of the data submitted. This is an approximation of average and is most useful when the standard deviation is large. *In simple terms, the standard deviation is the average difference of each number from the average. The greater the standard deviation, the greater the difference among the data. The greater the standard deviation, the more important it is to consider the median in addition to the average when comparing your data to the study results. *Maximum is the largest value submitted. *Minimum is the smallest value submitted. * responses is the number of companies responding to this question. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 5

6 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 1B Product Mix This report prepared for Corp Product Mix - Individual Life Policies - Whole Life Individual Life Policies 1. policies in force annual premium $0 $ new business policies applied for new business policies issued Average face amount of new policies applied for $0 $ Average face amount of new policies issued $0 $0 0 7.Number of Underwriters assigned to review life applications Approx. # of cases reviewed per Underwriter - 12 mos Minimum face amount that goes to an Underwriter $0 $ Percent (%) of applications sent to an Underwriter % 0% Percent (%) of applications sent for tele-underwriting % 0% Percent (%) of apps underwritten by an expert underwriting computer system % 0% Avg. age of insured on new policies issued All figures for 12 month period July 1, June 30, 2014 Number of Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 6

7 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 1B Product Mix This report prepared for Corp Product Mix - Individual Life Policies - Term Life Individual Life Policies 1. policies in force annual premium $0 $ new business policies applied for new business policies issued Average face amount of new policies applied for $0 $ Average face amount of new policies issued $0 $0 0 7.Number of Underwriters assigned to review life applications Approx # of cases reviewed per Underwriter - 12 mos Minimum face amount that goes to an Underwriter $0 $ Percent (%) of applications sent to an Underwriter % 0% Percent (%) of applications sent for tele-underwriting % 0% Percent (%) of apps underwritten by an expert underwriting computer system % 0% Avg. age of insured on new policies issued All figures for 12 month period July 1, June 30, 2014 Number of Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 7

8 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 1B Product Mix This report prepared for Corp Product Mix - Individual Life Policies - Variable Life Number of Individual Life Policies 1. policies in force annual premium $0 $ new business policies applied for new business policies issued Average face amount of new policies applied for $0 $ Average face amount of new policies issued $0 $0 0 7.Number of Underwriters assigned to review life applications Approx # of cases reviewed per Underwriter - 12 mos Minimum face amount that goes to an Underwriter $0 $ Percent (%) of applications sent to an Underwriter % 0% Percent (%) of applications sent for tele-underwriting % 0% Percent (%) of apps underwritten by an expert underwriting computer system % 0% Avg. age of insured on new policies issued All figures for 12 month period July 1, June 30, 2014 Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 8

9 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 1B Product Mix This report prepared for Corp Product Mix - Individual Life Policies - Universal Life Number of Individual Life Policies 1. policies in force annual premium $0 $ new business policies applied for new business policies issued Average face amount of new policies applied for $0 $ Average face amount of new policies issued $0 $ Number of Underwriters assigned to review life applications Approx # of cases reviewed per Underwriter - 12 mos Minimum face amount that goes to an Underwriter $0 $ Percent (%) of applications sent to an Underwriter % 0% Percent (%) of applications sent for tele-underwriting % 0% Percent (%) of apps underwritten by an expert underwriting computer system % 0% Avg. age of insured on new policies issued All figures for 12 month period July 1, June 30, 2014 Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 9

10 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 1B Product Mix This report prepared for Corp Product Mix - Individual Life Policies - Variable Universal Life Number of Individual Life Policies 1. policies in force annual premium $0 $ new business policies applied for new business policies issued Average face amount of new policies applied for $0 $ Average face amount of new policies issued $0 $0 0 7.Number of Underwriters assigned to review life applications Approx # of cases reviewed per Underwriter - 12 mos Minimum face amount that goes to an Underwriter $0 $ Percent (%) of applications sent to an Underwriter % 0% Percent (%) of applications sent for tele-underwriting % 0% Percent (%) of apps underwritten by an expert underwriting computer system % 0% Avg. age of insured on new policies issued All figures for 12 month period July 1, June 30, 2014 Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 10

11 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 1C Distribution Channels This report prepared for Corp Types of Distribution Channels and the % of New Business Issued Individual Life Policies Number of 1. General Agent % 0% 0 2. Career Agent % 0% 0 3. PPGA % 0% 0 4. Broker % 0% 0 5. Security Brokerage Firm % 0% 0 6. Financial Institutions % 0% 0 7. Direct Mail % 0% 0 8. Internet % 0% 0 9. Other % 0% Other % 0% 0 TOTAL 0.0% Other Includes: NOTE: The table above shows the percentage of new business issued through each of these distribution channels (for those companies who utilize that distribution channel). Because distribution channels vary by company, all zero's reported were dropped to give a better indicator of the source of business, therefore the average column will not total 100%. For example, question 1 can be read as follows: Out of all survey participants, twelve companies reported that they distribute through general agents and of those who do distribute through general agents, the average percentage of new business issued through this channel is 58%, the median (middle) percentage is 57%, the standard deviation is 36%, the maximum figure reported was 100% and the minimum figure reported was 1%. The statistics that are the most important are the average and the median. This is typically the best indicator of the source of business. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 11

12 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 1D Technology & Automation This report prepared for Corp Technology and Automation for Producers / Agencies 1. Do producers/agencies have the capability to enter life applications into the new business system? Corp Yes No Whole Life Term Life Variable Life Universal Life Variable Universal Life Number of 2A. Do you have an automated method of tracking the status of new business? Corp Yes* No Whole Life Term Life Variable Life Universal Life Variable Universal Life Number of 2B.* If yes to 2A can agents access this system for status of pending new business? Corp Yes No Whole Life Term Life Variable Life Universal Life Variable Universal Life Number of Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 12

13 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 1D Technology & Automation This report prepared for Corp Technology and Automation for Producers / Agencies Cont. 3. Do you have an automated phone system that allows producers/agencies to get updates on pending new business? Corp Yes No Whole Life Term Life Variable Life Universal Life Variable Universal Life Number of 4. Do producers/agencies have the capability to issue policies from the field office? Corp Yes No Whole Life Term Life Variable Life Universal Life Variable Universal Life Number of Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 13

14 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 1E Electronic Applications (E-App) This report prepared for Corp Corp Yes No Number of 1. Do you have an E-App platform currently in production for life products? If "Yes" to #1, for which products? Corp Number of "Yes" Whole Life 0 Term Life 0 Variable Life 0 Universal Life 0 Variable Universal Life 0 3. What % of all life applications are submitted via E-App? % 0% 0 Corp Yes No Number of 4. Does your E-App platform provide an e-signature capability? Number of Number of 4a. If yes to #4, what % of E-Apps are signed with E-Signature? % 0% 0 Corp Yes, within next 12 months Yes, within next 1-3 years No plans at this time 5. If "No" to #1, do you have plans to implement an E-App platform in the future for life products? Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 14

15 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 2 New Business Functions - Not in Good Order (NIGO) Service Issues This report prepared for Corp Not in Good Order (NIGO) Service Issues Number of 1. What percentage of your New Business is submitted "In Good Order"? % 0% 0 1a. Briefly describe your company's definition of NIGO and circumstances for classifying a life app as NIGO RESPONSES INCLUDED: Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 15

16 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 2 This report prepared for Corp Not in Good Order (NIGO) Service Issues Corp Yes No 2. Do you track "In Good Order" and "Not In Good Order" business separately? 0 0 Corp Yes No 3. Do you have a system for tracking NIGO items? 0 0 Corp Workflow System Home grown tracking system Other 4. *If you answered yes to #3, what tracking system do you use? Workflow System, Home grown tracking system or other Corp New Business Processors Dedicated NIGO Service Team Other 5. Who handles the processing of NIGO items? New Business Processors, Dedicated NIGO Service Team or Other Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 16

17 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 2 New Business Functions - Not in Good Order (NIGO) Service Issues This report prepared for Corp Not in Good Order (NIGO) Service Issues Corp Deposit Funds Hold funds until case is in Good Order 6. Do you deposit funds on NIGO cases or do you hold the funds until the case is In Good Order? 0 0 Corp Yes No 7. Do you pay advance commission on cases that are pending in a NIGO status? Yes or No 0 0 Number of 8. How long do you hold a NIGO case before returning funds and closing the case? (# of Days) Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 17

18 Section 3 This report prepared for Corp Method in which service times are reported in Section 3 Corp # Reporting in Calendar Days # Reporting in Business Days Calendar or Business Days 0 0 NOTE: Service times that are reported in business days are converted to calendar days by multiplying by a factor of 1.4 to get a calendar day equivalent. All service times in the survey results are reported in calendar days. New Business Case Distribution Percent (%) of new applications received by business type / Tax-Free Exchanges % 0% 0 2. Replacements (not 1035/tax-free exchanges) % 0% 0 3. New Business (not 1035/tax-free exchanges or replacements) % 0% 0 TOTAL 0.0% -- Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 18

19 Section 3A This report prepared for Corp New Business Case Distribution Actions taken before issuing a policy (as a percentage (%) of apps. received) 1. Application is approved in better than standard risk class % 0% 0 2. Application is approved in standard risk class % 0% 0 3. Application is approved in substandard risk class % 0% 0 4. Application is declined - medical or non-medical reasons % 0% 0 5. Application is postponed - underwriter's decision to render a decision to a later date, when applicant's medical or non-medical status may be more favorable % 0% 0 6. Application is incomplete - case is closed for missing underwriting requirements or information % 0% 0 7. Application is withdrawn - field or applicant request % 0% 0 TOTAL 0.0% -- Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 19

20 Section 3A This report prepared for Corp New Business Case Distribution Actions taken after issuing a policy (as a percentage (%) of policies issued) 8. Application is approved and policy is issued and placed in force (by premium application and commission generation) in better than standard risk class % 0% 0 9. Application is approved and policy is issued and placed in force (by premium application and commission generation) in standard risk class % 0% Application is approved and policy is issued and placed in force (by premium application and commission generation) in substandard risk class % 0% 0 Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 20

21 Section 3A This report prepared for Corp New Business Case Distribution Actions taken after issuing a policy (as a percentage (%) of policies issued) 11. Not Taken Offer / NTO i.e., application is approved in any risk class and a policy is issued but not placed in force (no premium application and no commission generation) due to missing delivery requirements or information % 0% Charge-Backs, i.e., application is approved in any risk class, a policy is issued and placed in force (by premium application and commission generation) but premiums and commissions are reversed, due to missing delivery requirements or information % 0% 0 What is your average placement rate % (total apps issued/paid vs. total apps received) for the following: TOTAL 0.0% -- Placement Rates All Life Products % 0% 0 Whole Life % 0% 0 Term Life % 0% 0 Variable Life % 0% 0 Universal Life % 0% 0 Variable Universal Life % 0% 0 Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 21

22 Section 3A This report prepared for Corp Do your underwriters take calls from producers? Corp Yes No* 0 0 Corp New Business Reps Call Center Reps Other *If no, who handles these calls? Other includes: Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 22

23 Section 3A This report prepared for Corp Do you offer special services in your underwriting department for your leading producers? Corp Yes * No 0 0 *If yes, what do you offer and what criteria do producers have to meet to qualify for this service? (Summary of responses) Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 23

24 Report 3B This report prepared for Corp All Life Products - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 1. Mail Time - Calendar Days elapsed from application date to date application is received in home office. 2. Time to Underwriter - Calendar days elapsed from date application received in home office to date of first underwriting review. 3. Pending Requirements - Calendar days elapsed from date of first underwriting review to date last medical requirement received in home office. 4. Underwrite Case - Calendar days elapsed from receipt of last underwriting requirement to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 24

25 Report 3B This report prepared for Corp All Life Products - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 5. Issue Case - Calendar days elapsed from date of underwriting approval to date policy is generated. 6. Mail Process - Calendar days elapsed from date policy is generated to date policy is mailed to producer. TOTAL TIME TO ISSUE - Calendars elapsed from application date to date policy is issued and mailed (i.e. "out the door") to the producer. [Sum of 1-6] 7. Delivery Requirements - Calendar days elapsed from date policy is mailed to the producer to date all delivery requirements (signed amendments, outstanding forms, delivery requirements) are received. TOTAL TURNAROUND TIME - Calendar days elapsed from application date to date all delivery requirements are received. [Sum of 1-7] Note: Companies with longer "Pending Requirements" and "Delivery Requirements" times appear to be contributing factors for Maximum " Time" figures Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 25

26 Report 3B This report prepared for Corp All Life Products - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 9. Jet, Simplified or Guaranteed Issue (non-medial business only) - Calendar Days elapsed from receipt of application (in house) to date policy is mailed to producer. 10. Electronic Applications - Calendar days elapsed from application date to underwriting decision is made. 11. Tele-Underwriting - Calendar days elapsed from receipt of applications (in house) to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 26

27 Report 3B This report prepared for Corp Whole Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 1. Mail Time - Calendar Days elapsed from application date to date application is received in home office. 2. Time to Underwriter - Calendar days elapsed from date application received in home office to date of first underwriting review. 3. Pending Requirements - Calendar days elapsed from date of first underwriting review to date last medical requirement received in home office. 4. Underwrite Case - Calendar days elapsed from receipt of last underwriting requirement to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 27

28 Report 3B This report prepared for Corp Whole Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 5. Issue Case - Calendar days elapsed from date of underwriting approval to date policy is generated. 6. Mail Process - Calendar days elapsed from date policy is generated to date policy is mailed to producer. TOTAL TIME TO ISSUE - Calendars elapsed from application date to date policy is issued and mailed (i.e. "out the door") to the producer. [Sum of 1-6] 7. Delivery Requirements - Calendar days elapsed from date policy is mailed to the producer to date all delivery requirements (signed amendments, outstanding forms, delivery requirements) are received. TOTAL TURNAROUND TIME - Calendar days elapsed from application date to date all delivery requirements are received. [Sum of 1-7] Note: Companies with longer "Pending Requirements" and "Delivery Requirements" times appear to be contributing factors for Maximum " Time" figures Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 28

29 Report 3B This report prepared for Corp Whole Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 9. Jet, Simplified or Guaranteed Issue (non-medial business only) - Calendar Days elapsed from receipt of application (in house) to date policy is mailed to producer. 10. Electronic Applications - Calendar days elapsed from application date to underwriting decision is made. 11. Tele-Underwriting - Calendar days elapsed from receipt of applications (in house) to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 29

30 Report 3B This report prepared for Corp Term Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 1. Mail Time - Calendar Days elapsed from application date to date application is received in home office. 2. Time to Underwriter - Calendar days elapsed from date of application received in home office to date of first underwriting review. 3. Pending Requirements - Calendar days elapsed from date of first underwriting review to date last medical requirement received in home office. 4. Underwrite Case - Calendar days elapsed from receipt of last underwriting requirement to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 30

31 Report 3B This report prepared for Corp Term Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 5. Issue Case - Calendar days elapsed from date of underwriting approval to date policy is generated. 6. Mail Process - Calendar days elapsed from date policy is generated to date policy is mailed to producer. TOTAL TIME TO ISSUE - Calendars elapsed from application date to date policy is issued and mailed (i.e. "out the door") to the producer. [Sum of 1-6] 7. Delivery Requirements - Calendar days elapsed from date policy is mailed to the producer to date all delivery requirements (signed amendments, outstanding forms, delivery requirements) are received. TOTAL TURNAROUND TIME - Calendar days elapsed from application date to date all delivery requirements are received. [Sum of 1-7] Note: Companies with longer "Pending Requirements" and "Delivery Requirements" times appear to be contributing factors for Maximum " Time" figures Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 31

32 Report 3B This report prepared for Corp Term Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 9. Jet, Simplified or Guaranteed Issue (non-medial business only) - Calendar Days elapsed from receipt of application (in house) to date policy is mailed to producer. 10. Electronic Applications - Calendar days elapsed from application date to underwriting decision is made. 11. Tele-Underwriting - Calendar days elapsed from receipt of applications (in house) to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 32

33 Report 3B This report prepared for Corp Universal Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 1. Mail Time - Calendar Days elapsed from application date to date application is received in home office. 2. Time to Underwriter - Calendar days elapsed from date of application received in home office to date of first underwriting review. 3. Pending Requirements - Calendar days elapsed from date of first underwriting review to date last medical requirement received in home office. 4. Underwrite Case - Calendar days elapsed from receipt of last underwriting requirement to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 33

34 Report 3B This report prepared for Corp Universal Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 5. Issue Case - Calendar days elapsed from date of underwriting approval to date policy is generated. 6. Mail Process - Calendar days elapsed from date policy is generated to date policy is mailed to producer. TOTAL TIME TO ISSUE - Calendars elapsed from application date to date policy is issued and mailed (i.e. "out the door") to the producer. [Sum of 1-6] 7. Delivery Requirements - Calendar days elapsed from date policy is mailed to the producer to date all delivery requirements (signed amendments, outstanding forms, delivery requirements) are received. TOTAL TURNAROUND TIME - Calendar days elapsed from application date to date all delivery requirements are received. [Sum of 1-7] Note: Companies with longer "Pending Requirements" and "Delivery Requirements" times appear to be contributing factors for Maximum " Time" figures Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 34

35 Report 3B This report prepared for Corp Universal Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 9. Jet, Simplified or Guaranteed Issue (non-medial business only) - Calendar Days elapsed from receipt of application (in house) to date policy is mailed to producer. 10. Electronic Applications - Calendar days elapsed from application date to underwriting decision is made. 11. Tele-Underwriting - Calendar days elapsed from receipt of applications (in house) to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 35

36 Report 3B This report prepared for Corp Variable Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 1. Mail Time - Calendar Days elapsed from application date to date application is received in home office. 2. Time to Underwriter - Calendar days elapsed from date of application received in home office to date of first underwriting review. 3. Pending Requirements - Calendar days elapsed from date of first underwriting review to date last medical requirement received in home office. 4. Underwrite Case - Calendar days elapsed from receipt of last underwriting requirement to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 36

37 Report 3B This report prepared for Corp Variable Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 5. Issue Case - Calendar days elapsed from date of underwriting approval to date policy is generated. 6. Mail Process - Calendar days elapsed from date policy is generated to date policy is mailed to producer. TOTAL TIME TO ISSUE - Calendars elapsed from application date to date policy is issued and mailed (i.e. "out the door") to the producer. [Sum of 1-6] 7. Delivery Requirements - Calendar days elapsed from date policy is mailed to the producer to date all delivery requirements (signed amendments, outstanding forms, delivery requirements) are received. TOTAL TURNAROUND TIME - Calendar days elapsed from application date to date all delivery requirements are received. [Sum of 1-7] Note: Companies with longer "Pending Requirements" and "Delivery Requirements" times appear to be contributing factors for Maximum " Time" figures Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 37

38 Report 3B This report prepared for Corp Variable Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 9. Jet, Simplified or Guaranteed Issue (non-medial business only) - Calendar Days elapsed from receipt of application (in house) to date policy is mailed to producer. 10. Electronic Applications - Calendar days elapsed from application date to underwriting decision is made. 11. Tele-Underwriting - Calendar days elapsed from receipt of applications (in house) to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 38

39 Report 3B This report prepared for Corp Variable Universal Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 1. Mail Time - Calendar Days elapsed from application date to date application is received in home office. 2. Time to Underwriter - Calendar days elapsed from date of application received in home office to date of first underwriting review. 3. Pending Requirements - Calendar days elapsed from date of first underwriting review to date last medical requirement received. 4. Underwrite Case - Calendar days elapsed from receipt of last underwriting requirement to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 39

40 Report 3B This report prepared for Corp Variable Universal Life- Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after rec'd 2 = Processed by the end of the 2nd calendar day after rec'd 5. Issue Case - Calendar days elapsed from date of underwriting approval to date policy is generated. 6. Mail Process - Calendar days elapsed from date policy is generated to date policy is mailed to producer. TOTAL TIME TO ISSUE - Calendars elapsed from application date to date policy is issued and mailed (i.e. "out the door") to the producer. [Sum of 1-6] 7. Delivery Requirements - Calendar days elapsed from date policy is mailed to the producer to date all delivery requirements (signed amendments, outstanding forms, delivery requirements) are received. TOTAL TURNAROUND TIME - Calendar days elapsed from application date to date all delivery requirements are received. [Sum of 1-7] Note: Companies with longer "Pending Requirements" and "Delivery Requirements" times appear to be contributing factors for Maximum " Time" figures Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 40

41 Report 3B This report prepared for Corp Variable Universal Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after rec'd 2 = Processed by the end of the 2nd calendar day after rec'd 9. Jet, Simplified or Guaranteed Issue (non-medial business only) - Calendar Days elapsed from receipt of application (in house) to date policy is mailed to producer. 10. Electronic Applications - Calendar days elapsed from application date to underwriting decision is made. 11. Tele-Underwriting - Calendar days elapsed from receipt of applications (in house) to date underwriting decision is made. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 41

42 Section 3C Source of Application Submissions This report prepared for Corp Source and % of Life Application Submissions Individual Life Policies Number of 1. Mail Service % 0% 0 2. Overnight Mail Service % 0% 0 3. Two-Day Mail Service % 0% 0 4. Fax Transmission % 0% 0 5. Electronic Transmission (not fax) % 0% 0 6. Local Courier % 0% 0 7. Other % 0% 0 8. Other % 0% 0 TOTAL 0.0% Other includes: NOTE: The table above shows the percentage of applications that companies are receiving from each source (for those companies who utilize that source). Because source of applications vary by company, all zero's reported were dropped to give a better indicator of the source of business, therefore the average column will not total 100%. For example, question 1 can be read as follows: Out of all survey participants, nineteen companies reported that they receive applications via standard mail service and of those who receive through standard mail service, the average percentage of applications received through this source is 26%, the median (middle) percentage is 13%, the standard deviation is 30%, the maximum figure reported was 99% and the minimum figure reported was 1%. The statistics that are the most important are the average and the median. This is typically the best indicator of the source of business. Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 42

43 Section 3 This report prepared for Corp Term Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after rec'd 2 = Processed by the end of the 2nd calendar day after rec'd 1. Average time for underwriting a standard term life case greater than $250,000, but less than $500, Average time for underwriting a sub-standard term life case greater than $250,000, but less than $500, Average time for underwriting a standard term life case less than $250,000, but more than $100, Average time for underwriting a sub-standard term life case less than $250,000, but more than $100,000 Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 43

44 Section 3 This report prepared for Corp Whole Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after rec'd 2 = Processed by the end of the 2nd calendar day after rec'd 1. Average time for underwriting a standard whole life case greater than $100,000, but less than $250, Average time for underwriting a sub-standard whole life case greater than $100,000, but less than $250, Average time for underwriting a standard whole life case less than $100,000, but more than $50, Average time for underwriting a sub-standard whole life case less than $100,000, but more than $50,000 Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 44

45 Section 3 This report prepared for Corp Variable Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after rec'd 2 = Processed by the end of the 2nd calendar day after rec'd 1. Average time for underwriting a standard variable life case greater than $250,000, but less than $500, Average time for underwriting a sub-standard variable life case greater than $250,000, but less than $500, Average time for underwriting a standard variable life case less than $250,000, but more than $100, Average time for underwriting a sub-standard variable life case less than $250,000, but more than $100,000 Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 45

46 Section 3 This report prepared for Corp Universal Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after rec'd 2 = Processed by the end of the 2nd calendar day after rec'd 1. Average time for underwriting a standard universal life case greater than $100,000, but less than $250, Average time for underwriting a sub-standard universal life case greater than $100,000, but less than $250, Average time for underwriting a standard universal life case less than $100,000, but more than $50, Average time for underwriting a sub-standard universal life case less than $100,000, but more than $50,000 Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 46

47 Section 3 This report prepared for Corp Variable Universal Life - Elapsed Times - Average Number of Days 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after rec'd 2 = Processed by the end of the 2nd calendar day after rec'd 1. Average time for underwriting a standard variable universal life case greater than $250,000, but less than $500, Average time for underwriting a sub-standard variable universal life case greater than $250,000, but less than $500, Average time for underwriting a standard variable universal life case less than $250,000, but more than $100, Average time for underwriting a sub-standard variable universal life case less than $250,000, but more than $100,000 Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 47

48 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 4 Policyowner Service Functions This report prepared for Corp Method in which service times are reported in Section 4 Corp # Reporting in Calendar Days # Reporting in Business Days Calendar or Business Days 0 0 NOTE: Service times that are reported in business days are converted to calendar days by multiplying by a factor of 1.4 to get a calendar day equivalent. All service times in the survey results are reported in calendar days. Subject Company Data included in aggregate statistics. Elapsed Times - Calendar days elapsed from original receipt in home office (date stamped in house) to date confirmation/acknowledgement/check mailed. * 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 1. Cash Loans 2. Cash Dividends 3. Cash Surrenders 4. Dividends to pay premiums on another policy 5. Changes of dividend option 6. Fund Changes - Variable Products 7. Non-Contestable Death Claims Calendar days from receipt of all required info needed for processing to day check mailed. # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 48

49 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 4 Policyowner Service Functions Subject Company Data included in aggregate statistics. 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 8. Contestable Death Claims Calendar days from receipt of all required info needed for processing to day check mailed. 9. Death Claims - Combined Figures 10. Waiver of Premium 11. Address Changes (not returned mail) 12. Premium Mode Changes Mode is the method by which premium is paid. 13. Ownership Changes 14. Assignments 15. Beneficiary Changes 16. Policy Changes with Underwriting This report prepared for Corp Elapsed Times - Calendar days elapsed from original receipt in home office (date stamped in house) to date confirmation/acknowledgement/check mailed. * # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 49

50 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 4 Policyowner Service Functions This report prepared for Corp Subject Company Data included in aggregate statistics. Elapsed Times - Calendar days elapsed from original receipt in home office (date stamped in house) to date confirmation/acknowledgement/check mailed. * 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 17. Policy Changes with no Underwriting 18. Policy Changes - Combined Figures # Monthly Transactions # Monthly Transactions Term Conversions with Underwriting 20. Term Conversions with no Underwriting 21. Term Conversions - Combined Figures 22. Reinstatements with underwriting 23. Reinstatements with no underwriting 24. Reinstatements - Combined Figures # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 50

51 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 4 Policyowner Service Functions Subject Company Data included in aggregate statistics. This report prepared for Corp Elapsed Times - Calendar days elapsed from original receipt in home office (date stamped in house) to date confirmation/acknowledgement/check mailed. * 0 = Processed by the end of the same day received 1 = Processed by the end of the next calendar day after received 2 = Processed by the end of the 2nd calendar day after received 25. Policyowner Correspondence - to Info Requests 26. Policyowner Correspondence - Research/Problem Resolution 27. Policyowner Correspondence - Combined Figures 28. Premium Payments - Calendar days elapsed from day premium received to day premium is applied. # Monthly Transactions # Monthly Transactions # Monthly Transactions # Monthly Transactions Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 51

52 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 5 Turnaround Time Tracking Methods This report prepared for Corp Turnaround Time Tracking Methods Workflow/Imaging Manually system Home grown system Other How do you track/record/ monitor/report your New Business functions' turnaround times? How do you track/record/ monitor/report your Policyowner Service functions' turnaround times? For tracking New Business service times, the response code for your company was: For tracking Policy owner service times, the response code for your company was: Other New Business include: Other Policyowner Service include: Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 52

53 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 5 Turnaround Time Tracking Methods This report prepared for Corp Turnaround Time Tracking Methods Agents Policyholders Processing Staff Other Service time standards are published for (select all that apply) The response for your company was: Other include: Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 53

54 LOMA 2014 Individual Life Insurance Service Turnaround Times Survey - North America Section 5 Turnaround Time Tracking Methods This report prepared for Corp Turnaround Time Tracking Methods Do you include a service quality standard along with any service time standard? Yes No 0 0 The response for your company was: If yes, please describe. Service s Reported include: Prepared by Angie Norman 7/23/2015 LOMA 2014 Individual Life STTS Report - FINAL Page 54