Principal Financial Group: Improvements to Underwriting

News Image 05-02-2014

Principal's experienced, knowledgeable and solution-oriented underwriting team is committed to helping you place your business quickly and effectively. To ensure continued competitive underwriting positioning, the following changes are effective July 1, 2013.

Paramed examination no longer required with completed TeleApp interviews
First introduced in 1997, the TeleApp interview has proven to reduce underwriting times through the reduction of routine age/amount requirements and Attending Physician Statements. Now Principal is pleased to announce the elimination of paramed examinations as a routine requirement at all ages and amounts when a TeleApp interview is completed (1-888-TeleApp).

An examiner will still visit the client to collect physical measurements and fluids, plus other requirements as needed, but the examiner will no longer complete an exam form. This change results in shorter exam appointment times and fewer questions to be answered by the applicants.

Enhancement to Healthy Lifestyle Credit (HLC) Program
Principal's industry-leading HLC program allows table ratings to be reduced or eliminated when an applicant has a favorable HLC profile. With their latest enhancement to the HLC program, a favorable HLC profile score can also help eliminate temporary flat extra ratings of up to $5.00 for qualifying medical conditions (including cancer) when the flat extra is the only rating.

Good news for some diabetic risks
Some diabetic risks may now qualify for Preferred rates. Basic qualifying criteria include: applicants ages 70 and older, lifetime non-tobacco users, no cardiovascular or cerebrovascular disease or diabetic complications, demonstrated diabetic control for an extended period, no other medical conditions, and routine doctor follow-up including exams and cancer screening.

Revised definition of Non-Tobacco Preferred
Currently, applicants ages 20-70 who have been tobacco-free for 12 months are eligible for consideration at Non-Tobacco Preferred rates. In reviewing Principal's guidelines, they feel 24 months is a more appropriate time for tobacco abstinence for preferred consideration. Consequently, they're adjusting their guidelines to 24 months tobacco free to be considered for Non-Tobacco Preferred rates. Principal will continue to consider applicants for Non-Tobacco Super Standard and Non-Tobacco Standard rates after 12 months tobacco free. They believe these changes position them competitively with their peer companies, many of whom require 24 to 36 months tobacco free to be considered for Non-Tobacco Preferred rates.



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