4
Underwriting and Effective Dates • Coverage is not effective until a policy has been approved and issued. • The “Effective Date” of a policy will be the policy date stated on the policy schedule page. It is not the date the application is signed. • Insurance policies may not be effective on the 29th, 30th and 31st of the month. • Simplified underwriting is used based upon the insured’s answers on the application. Policies are issued on an accept/reject basis. • If a bank draft application is submitted without premium, the first modal premium will be drafted once effective. Subsequent drafts will occur on the date requested; however, if no date is requested, the draft will occur on the date of the month on which the policy became effective. • Disability Income Rider- The applicant must meet the following eligibility guidelines. • Must apply at time of application for the base Accident coverage. • The monthly benefit amount cannot exceed 60% of the gross income. • Applicant must be actively at work on the effective date to be eligible. • Full time employees who work at least 27 hours per week. • Persons who are laid off, between jobs, on disability or part - time employees are not eligible. Completing the Application • New application submission can be done via Online enrollment, easy upload through Agent Resource Center, fax or regular mail. • You must be properly licensed and/or appointed by the insurance department and the Company in the state you are soliciting applications, prior to soliciting any applications. • Use the appropriate state version of the PAID Application, AK7026, as well as current approved state sales material. • In addition, an Outline of Coverage for this product must be left with the applicant. Complete all questions on the AK7026 application. Plainly print the applicant’s full name, the applicant’s residence address must be completed making sure the zip code is included. Also, include the proper telephone number starting with the area code and a valid email address. • The replacement form is mandatory whenever replacement is involved. • If you are completing the application with the applicant, all questions should be asked, and the answers recorded on the application exactly as stated to you. On exclusions, the Company must have the full name of the person to be excluded with the health condition listed. **Always, take a few minutes to review the application to make sure it is completed in its entirety, and the premiums are calculated properly based on the modal factors. Processing Delays If an application is submitted with incomplete or missing information that is critical to the risk evaluation, an amendment to the application will be issued. Critical information includes but is not limited to: Plan choice, complete residential address, date of birth, any unanswered health questions, applicants signature (mother’s maiden name if applied online), replacement forms are not submitted, or if the quoted premium is not accurate.
Made with FlippingBook Annual report maker