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Case Success Stories

Real Stories. Real Cases. Real Success

Case Success: Mutual of Omaha’s Underwriting Navigates a Split Dollar Case

Split dollar cases are often complicated by the unique financial underwriting documentation they require. In this case, Rhyne Bell, Chief Underwriter at Mutual of Omaha was able to assist the Member Firm by identifying the documentation needed to justify the coverage, resulting in $115,120 of target premium placed at Mutual of Omaha. Read on for the details!

AT A GLANCE

Underwriting: Mutual of Omaha’s Underwriting navigates through a Split Dollar Case
Carrier: Mutual of Omaha
Product: Life Protection Advantage IUL
Target: $115,120

SITUATION

  • A 67-year-old male was seeking $4,000,000 of split dollar coverage as an executive benefit.

SOLUTION

  • Rhyne Bell, Chief Underwriter, Mutual of Omaha
  • Mutual of Omaha’s Life Protection Advantage IUL

RESULTS

  • The client was a long-time CEO of a credit union, and the board was looking to provide an executive benefit. The executive benefit was structured as a collateral assignment split dollar arrangement subject to IRC 7872.
  • Under this arrangement, the client would be the owner of the policy and the credit union would loan premiums to the executive.
  • The financial underwriting on cases like this is often difficult, as many underwriters are unfamiliar with the intricacies of split dollar cases. Upon learning the reason for coverage, Rhyne Bell, Chief Underwriter at Mutual of Omaha, is quite knowledgable and was able to provide a very list of items needed to approve the coverage, including:
    • A cover letter detailing the Client’s background with the credit union and plan structure to include the use of a SPIA to pay for the premiums.
    • Two years of tax returns to verify compensation from the credit union
    • A copy of the split dollar agreement
  • With a high level of understanding on how a business split dollar agreement works, Rhyne was able to simplify the process for the Member Firm, allowing for $115,120 of target premium to be placed at Mutual of Omaha.

Case Success: OneAmerica’s Single Life Preferred Rates Win the Day

When working on any case, it can be difficult to find the best solution for a Client who is limited on product options due to things like age, premium budget, and widow status. In this case, AIN’s Member Services Team was able to utilize OneAmerica’s AssetCare, which can offer preferred pricing to single insureds, to assist a 77-year-old looking for the best Long-Term Care funding option. Read on for the details!

AT A GLANCE

Asset-Based LTC: OneAmerica’s Single Life Preferred Rates Win the Day
Carrier: OneAmerica
Product: Assetcare
Target Premium: $73,173 Single Premium

SITUATION

  • A 77-year-old widower seeking to secure his Long-Term Care funding plan.
  • The Client’s age presented a product selection challenge, and his being a widow precluded any couples discount or preferred pricing.

SOLUTION

  • AIN Member Services Team
  • OneAmerica AssetCare

RESULTS

  • Given the Client’s age and limited premium budget, the AIN Member Firm quickly reached out to the AIN Member Services Team for assistance.
  • After quickly confirming the clients age, marital status, case design elements and underwriting details, many of the currently available products were excluded based on issue age alone.
  • With that step complete, attention turned to the remaining products and optimizing the design, seeking the maximum monthly benefit with the following parameters:
    • $73,173 Single Pay
    • 4-Year Benefit Period
    • No Inflation
  • Rather than running all products without a Couples Discount or at Standard rates, a single carrier was identified that could offer Preferred pricing to a widower: OneAmerica
  • That advantage translated into a monthly benefit that outpaced competing carriers by over $410, an increase of over 14%.
  • This underwriting advantage allowed OneAmerica to place the case with a $73,173 single pay and a monthly benefit of $3,249, bolstering the Client’s LTC funding strategy.

Case Success: Transamerica Showcases its Foreign National Proficiency

When working on a case in the foreign national space, Transamerica is one of those carriers you can rely on to make the process seamless. With its robust country list, easy-to-access translation services, and more, Transamerica can turn otherwise tricky cases into wins. Check out how Transamerica and the AIN Underwriting Team were able to successfully place a recent foreign national case with $20,150 in target premium!

AT A GLANCE

Underwriting: Transamerica Showcases its Foreign National Proficiency
Carrier: Transamerica
Product: Transamerica Trendsetter Super 20
Target Premium: $20,150

SITUATION

  • A 65-year-old foreign national male from Uruguay was seeking $2,000,000 of term coverage

SOLUTION

  • Transamerica’s foreign national underwriting

RESULTS

  • One of Transamerica’s core competencies is the foreign national space, including a robust country list, translation services, open product selection, and liberal global net worth requirement.
  • In this case, the client was looking for term coverage and his medical records were from Uruguay. Transamerica was able to take the case in an easy, sales-friendly way:
    • Unlike most carriers, Transamerica will offer term on foreign nationals
    • Uruguay is an “A” country
    • Transamerica reads medical records in Spanish and does not require a translation service.
    • Transamerica allows for power of attorney on policy delivery
  • All of these factors made Transamerica the insurance company of choice for this case, placing $20,150 in target premium for the Member Firm.

Case Success: How to Offset an Elevated NT Pro BNP

An elevated NT Pro BNP discovered as part of the paramed exam can often lead to a case failing to move forward. In this case, the AIN Underwriting Team was able to turn the case into a win by improving offers from multiple carriers from Table 4 to Standard, resulting in over $1.4MM placed target premium. Read on for the details!
 

AT A GLANCE

  • Underwriting: How to offset an elevated NT Pro BNP
  • Carrier: 8 AIN Carriers
  • Face Amount: Total Line of $52MM of New Coverage
  • Target Premium: $1,456,058

 

SITUATION

  • A 64-year-old ultra-high-net worth male was seeking new insurance totaling $52MM from a number of carriers.
  • The completed insurance labs showed a NT Pro BNP of 445.
  • Given the client’s age & gender, the NT Pro BNP called for a Table 4 rate, which was the initial offer from virtually every carrier involved in the case.

SOLUTION

  • Will Walker, Director of Member Underwriting Services, AIN
  • NT Pro BNP “offset” with normal stress echo
  • Effective partnership with multiple AIN Carriers

RESULTS

  • Upon receiving rated offers from multiple carriers, the AIN Member Firm contacted Will Walker, who explained what the NT Pro BNP value represents and how to offset the lab findings.
  • Fortunately, one month prior to the insurance exam, the client completed an executive physical that included a normal stress echo, which can offset the unfavorable result from the insurance exam. 
  • Upon receiving the stress echo, the AIN Member Firm and Will Walker contacted each carrier, asking them to reconsider their initial offer based on the new, favorable evidence.
  • Multiple carriers were able to improve their offer to Standard Non-smoker based on the normal stress echo test within 30 days of the NT Pro BNP findings.
  • With all offers moved to Standard Non-smoker, over $1.4MM of target premium was placed across 8 AIN Carriers.

Case Success: Prudential Wins Case with Positive CDT Marker

We know that it’s common to receive a decline with a positive CDT marker, but the team at Prudential had everything in place to make move this case into the win column. After running into roadblocks at other carriers, the Member was able to move this case to completion extremely quickly. Read on for the details! 
 

AT A GLANCE

Underwriting: Positive CDT Marker (Alcohol) can Still be Insurable
Carrier: Prudential
Product: PruLife Essential UL
Target: $64,000 

SITUATION

  • A 40-year-old male was seeking a a $5,000,000 GUL
  • The client was originally declined by another carrier due to elevated liver functions with a positive Carbohydrate-Deficient Transferrin (CDT) on insurance labs.

SOLUTION

  • Pat Garaghty, Underwriting Officer, Prudential Financial
  • Gerri Bishop, Director of Member Underwriting Services, AIN

RESULTS

  • Upon receiving a decline, the AIN Member Firm reached out to the AIN Underwriting Team with the exam, lab results and medical records. 
  • Upon reviewing the records, Gerri Bishop contacted Pat Garaghty to explain the case. Pat was able to consider the risk, even with the positive CDT on the labs, at Table 3 based on the following:
    • All liver functions were normal or less than 2x above normal
    • Normal Mean Corpuscular Volume in the records
    • Normal HDL levels
    • Clean Motor Vehicle Report
    • No Alcohol criticisms in the records
    • The positive CDT could be explained by holiday events that took place right before the exam
  • A formal application was taken, resulting in $64,000 of placed target premium.