Underwriting process and capabilities

[channel234]

Hello all. I have a few questions that are specific to agencies and brokerages that represent individual health insurance carriers. Any info or insight you could offer would be very helpful.

1) Would it be true that most agencies (individual health) have on-staff underwriters?

2) Does the on-staff underwriter normally have the tools and capabilities to generate quotes on their own (including rate-ups, riders, and exclusions), without having to first submit a full application to the insurance carrier? In other words, can agency underwriters provide quotes which agents can then present to potential customers?

Thanks in advance for your help.
R

 

[somarco]

1) Would it be true that most agencies (individual health) have on-staff underwriters?

No.

2) Does the on-staff underwriter normally have the tools and capabilities to generate quotes on their own (including rate-ups, riders, and exclusions), without having to first submit a full application to the insurance carrier? In other words, can agency underwriters provide quotes which agents can then present to potential customers?

The few agency's with "underwriters" are usually folks that just check the app to make sure all the blanks are filled in. They don't do any underwriting per se. That is something the agent should be able to do.

 

[channel234]

SOMARCO....thanks for the quick reply. To follow up on your reply to Question 2, let me make sure I understand you correctly. Are you saying that most agents have tools that allow him/her to generate a reasonably accurate quote (including any known conditions meriting rate-ups, riders, and exclusions) before they submit the full application to the private health insurance carrier?

 

[taterpeeler]

SOMARCO....thanks for the quick reply. To follow up on your reply to Question 2, let me make sure I understand you correctly. Are you saying that most agents have tools that allow him/her to generate a reasonably accurate quote (including any known conditions meriting rate-ups, riders, and exclusions) before they submit the full application to the private health insurance carrier?

They have the toold... but the question is do they know how to use them and will they... so many agents are stupid and don't know diddley about what will happen on a health case... oh, they will tell u they do, but they don't.... and also so many agents will not quote the rate up because other agents they are fighting for the biz with won't quote the rate up.. so after the deal is underwriten the agent or manager will call u and say "good news, we got u approved, however its got a 50% rt up and an exclusion for allergies." this happens most times when an agent only has one or two companies they will write and can't place u with the company that will take the risk.

a few of us will quote the client the rate he thinks it will be AFTER underwriting... if some slime ball agent lies and quotes prefered rates well... so be it. i still think i can get the client to trust me buy from me.

i will quote the prefered rate first just to show the client i am just as cheap as agent #2 but i follow it up with... now, lets deal in reality... the actual price will be 25% more.... or i will say... mr client, unicare will not approve u prefered with your current health status so why are we even looking at them... however this company will..

hope this helps

 

[channel234]

PeelerInsurance.com...thanks for your info. What kinds of tools do the health insurance agents have? Do they use printed tables of rates to quote the potential buyer? Or do they use online tools? Or both?

 

[taterpeeler]

PeelerInsurance.com...thanks for your info. What kinds of tools do the health insurance agents have? Do they use printed tables of rates to quote the potential buyer? Or do they use online tools? Or both?

Both, but I think all my quotes are online tools and tru my quoting website at HEALTH INSURANCE QUOTE ( i only sell in texas so if u go there find a texas zip) The only problem with the website is it will most times only quote prefered, hence, my first post related to prefered rate agents quote all the time.

In regards to the rate ups... most is done by "feel" I have been in this biz for so long and have so much history I can guess almost to the dollar what the potential outcome will be on any rate up or exclusion... as long as the client is honest when i speak with them... also we have underwriting guides to assist... but they sometimes have a history of being wrong... so i would say it's "feel" or experience that tell me what the final rate will be

These questions are very intersting.... why do u ask??

 

[channel234]

Peeler,

Sincerely, thank you for your excellent info and for sharing your experience with me.
Well, to answer your question, I ask because I am developing an enterprise that I believe will revolutionize the way health insurance agents do business. And, in the process, I'm convinced that it will make private health insurance much more attractive to millions of people who really need it.

 

[somarco]

I am developing an enterprise that I believe will revolutionize the way health insurance agents do business.

Does this involve network marketing . . . ?

 

[channel234]

Does this involve network marketing . . . ?

Somarco....NO, it does not involve network marketing. I am not on this site to scam people. I know that words like "revolutionize" are pretty strong but I used it intentionally. I believe in what I'm doing that much. I just want to make sure that I have the clearest possible understanding of certain processes and practices, which is why I've been asking these questions.

 

[Chkndinner14]

Underwriter on staff, no. Most of the tasks you ask about are purely clerical functions. If an underwriting guide from a company is not clear on how they will deal with a specific condition, most companies have prescreen tools on their websites.

I usually get same day service on prescreens. The tasks you speak of are not difficult. Maybe time consuming, but would be more of a clerical function than an underwriting function. Same as checking an app, a clerical function, not an UW function.

Most agents use online applications which can't be advanced unless all questions are answered.