3. Business Mentality
• Old School
• Underwriting is based on field underwriting
• Strongly believe in the agent physically seeing
the client and taking the application
4. Loss Ratios
• Agents are expected to manage their book of
business and maintain a reasonable loss ratio.
• Acceptable loss ratios would be 60% or below
on a newer block of business eventually
increasing as the block of policies ages
maintaining an average of 73% or less
5. Underwritten Business Percentage
• Agents are expected to have a blend of
underwritten and non-underwritten business.
Placement Rate
• The company wants to avoid a situation where
an agent has a large amount of rejections.
• This typically happens due to a lack of
understanding of the underwriting process or
incomplete applications.
6. Underwriting Mentality
• The company is a field underwritten model vs
a simplified issue model.
• Agent’s are expected to obtain all of the
information necessary to underwrite the
application
• There are no APS’s
• Therefore any questions regarding the
insured’s health will be directed to the agent
for clarification.
7. Application
Catalog of Products page 9
Uninsurable Impairments
Within 3 years-Heart Attack, Coronary Bypass
Surgery, Angioplasty, and or stent replacement
Within 2 years-Stroke or more than one in a five
year period
Ever- Cardiomyopathy, Hemophilia,
Heart and Circulatory Conditions
Underwriters typically are looking at whether a
condition is under control and typically the longer the
better
4A) Heart valve disease, carotid artery
disease, peripheral vascular disease,
coronary artery disease, angina,
cardiomyopathy, congestive heart failure, or
heart attack
4B) A stroke or transient ischemic attack (TIA,
mini-stroke)
4C) Heart surgery including angioplasty,
bypass, or stent placement or surgery for
carotid artery or peripheral vascular disease
8. Application
4D) Internal Cancer, leukemia, lymphoma,
melanoma, or multiple melanoma
Catalog of Products page 9
Uninsurable Impairments
Within 5 years-if treated by radiation or
chemotherapy
Current-Internal Cancer (including Melanoma)
if currently present
Within 3 years- surgery for cancer removal
Cancer
9. Application
4E) Diabetes, Parkinson’s Disease, Chronic
Kidney Disease, Alzheimer's Disease,
Dementia, Chronic Obstructive Pulmonary
Disease, Emphysema, Cirrhosis of the Liver.
Or Multiple Sclerosis
Catalog of Products page 9
Uninsurable Impairments
Emphysema- No Oxygen (typically recent
diagnosis without any other chronic conditions)
Diabetes-NO Insulin (Typically the shorter time
frame the better and can be a problem when
combined with circulatory condition)
Parkinson’s Disease- Individual consideration
(Typically recent diagnosis with no meds for the
condition)
(other health conditions typically a factor)
Other Chronic Illnesses
I would always call underwriting first before taking an
application on Parkinson’s Disease or Emphysema
Above conditions are uninsurable except for
Diabetes, Parkinson’s Disease , Emphysema
10. Application
4F) Alcohol and Drug Abuse
Catalog of Products page 9
Uninsurable Impairments
Current Treatment –Uninsurable
Recovery-at least two years without subsequent
use as a general rule
Alcohol and Drug Abuse
11. Application
4G) Any mental or nervous disorder requiring
treatment (including hospital confinement) by a
psychiatrist, psychologist, counselor, or
therapist
Catalog of Products page 9
Uninsurable Impairments
Current Treatment –Uninsurable
Mental and Nervous Disorders
Previous diagnosis of Psychosis (insanity) is
uninsurable
12. Application
5) Within the past two years have you been treated for
degenerative bone disease, crippling/ disabling or
rheumatoid arthritis or have you been advised to have a
joint replacement
Rheumatoid arthritis will be given individual consideration
if it is not crippling or disabling
6) Have you ever been diagnosed with or treated by a
physician or licensed medical professional for acquired
immune deficiency syndrome (AIDS) or AIDS related
complex
9) Do you need assistance or supervisions of any kind to
perform everyday living activities (such as: walking,
cooking, eating, personal hygiene, including toileting and
bathing, dressing, housekeeping or shopping.
10) Do you use any medical appliance such as a
wheelchair, walker, cane, or hospital bed.
11) Have you ever been advised that you may require
surgery but not had the surgery.
Knock Out Questions
Knock Out Questions
13. Application
7 and 8) Within the last 12 months have you consulted
or been treated by a physician or other medical
practitioner, been confined or has had confinement
recommended to a hospital, nursing home, home for
the aged, or any other institution or care center
Other Impairments
Name of Condition
Diagnosis
Date of diagnosis
Tests performed
Dates of treatments
Medications prescribed
Date treatment completed
Any limitations in regular activities due to the impairment
Current Condition
Name and address of physician or health facility that will
have the most complete records
The Catch All Questions
14. Application
12) Have you smoked cigarettes or used tobacco in
any form within the last 12 months? If you have quit
using tobacco, list the quit date_____________
Tobacco Use
Quit date does not apply
15. Other Uninsurable Conditions
• Addison’s Disease
• Chronic Brain Syndrome
• Crohn’s Disease
• Ulcerative Colitis
• Regional Enteritis (if severe)
• Cushing’s syndrome
• Leukemia
• Lou Gehrig’s Disease
• Lupus (disseminated or systemic)
• Paget’s Disease
• Heart Valve Replacement
These are relatively commonly encountered conditions. This is not a complete list of
uninsurable conditions. Uninsurable conditions that rarely occur are not included.
16. Doctors and Prescription DrugsSee Attached
See Attached
If you do not have enough
space use a separate page
Make sure to have the client
date and sign the additional
page or pages.
17. Effective Dating
• Do not submit applications more than 60 days
from the effective date of the policy
• Backdated applications will not be accepted
• No other person including the spouse may sign
on behalf of the proposed insured
18. Drafting of Premium
• First premium is drafted on issue
• For EFT, the withdraw date must be within 10
days of the effective date
19. Pre-Existing Conditions
• Policies are issued with a six month waiting
period unless you provide proof you are
replacing creditable coverage. If you qualify as
an eligible person the waiting period will be
waived
I would send evidence of creditable coverage with application
20. Submitting Business
• New Business
• Fax: 309-323-8440
• Email: newbusiness@picapplications.com
• Mailing Address: Pekin Insurance c/o
Heartland Financial Group
1600 NE Coronado Dr.
Blue Springs, MO 64014
21. Contact Us:
Bill Ellsworth – Vice President- HFG/Presenter – bille@e-hfg.com
J. Mark Williams – National Life Marketing Manager – jmwilliams@pekininsurance.com
800-322-0160 Ext. 2194
Agency Services/Contracting-Licensing/Supplies
Sandy Stamper – sstamper@piccontracting.com – 844-502-6781
Tamrah Starr – tstarr@piccontracting.com – 844-502-6781
Underwriting
800-322-0160 ext. 2823 or 2537
Policy Owner Services
800-322-0160 ext. 2823 or 2718
