Principal: Accelerated Underwriting Program Enhancements - Effective Feb. 15th

01-29-2021

Last March, Principal introduced temporary underwriting guidelines to use with their Accelerated Underwriting (AU) program. They enabled Principal underwrite more of your clients on a non-examination basis by using digital health data from various sources, including the patient portal. This experience provided tremendous insights into the potential future capabilities of accelerated underwriting. Principal has used those learnings to establish new Aceelerated Underwriting guidelines outlined below that will allow more of your clients to benefit from this innovative program.

New AU program guidelines effective Feb. 15, 2021

Products	Applicant age	Maximum face amount	Additional requirements
Principal^® Term Principal Universal Life Provider Edge II^SM Principal Universal Life Flex III^SM Principal Indexed Universal Life Flex II^SM Principal Indexed Universal Life Accumulation II^SM Principal Variable Universal Life Income IV^SM	18-40	$3 million	Drop Ticket must be used to submit all term applications up to $3 million face amount (except in New York). For individuals who don’t qualify for AU due to model score or knock out criteria, we’ll review to see if digital health data (DHD) can be used to help underwrite them without an insurance exam. DHD records will need to include results from an exam/lab within the prior 24 months.
	41-50	$2.5 million	For face amounts greater than $2 million, DHD records will need to include results from an exam/lab within the prior 24 months. Drop Ticket must be used to submit all term applications up to $2.5 million face amount (except in New York). For individuals who don’t qualify for AU due to model score or knock out criteria, we’ll review to see if DHD can be used to help underwrite them without an insurance exam. DHD records will need to include results from an exam/lab within the prior 24 months.
	51-60	$2.5 million	For face amounts greater than $1 million, DHD records will need to include results from an exam/lab within the prior 12 months. Drop Ticket must be used to submit all term applications up to $2.5 million face amount (except in New York). For individuals who don’t qualify for AU due to model score or knock out criteria, we’ll review to see if DHD can be used to help underwrite them without an insurance exam. DHD records will need to include results from an exam/lab within the prior 12 months.
Principal Executive Variable Universal Life III	18-60	$5 million	For issue ages 18-40 and face amounts greater than $3 million; issue ages 41-50 and face amounts greater than $2 million; and issue ages 51-60 and face amounts greater than $1 million, DHD records will need to include results from an exam/lab within the prior 12 months. All individuals, including those with a qualifying AU model score, will need to have exam results including labs within the prior 12 months. DHD records will need to include results from an exam/lab within the prior 12 months.

Additional AU program details

You no longer need to request AU. All applicants who meet the age and face amount requirements will automatically start through AU and will only be removed if we determine they no longer meet eligibility. When this occurs, Principal will advise of the exam requirements needed to continue.
Drop Ticket must be used for all term submissions up to the stated maximum AU face amounts—except for applications written in New York. Term applications that don’t meet these guidelines will no longer be accepted beginning April 1, 2021. Further details will follow.
Client-completed Part B (online or phone) is required for permanent products.

Principal is appreciative for the opportunity to serve you and your clients. Please give BUA a call at 1-800-792-6795 with any questions about these changes.