IMPAIRED RISK

Here are some commandments from a firm specializing in difficult cases.

1. Don't quote a preferred rate to a client with a known medical impairment

2. Never assume a impairment is trivial.

3. NEVER (VERY important) submit a impaired risk to your primary company only. A decline can cost 6+ weeks and the impairment can worsen

4. Never submit an impaired risk to more than one brokerage agency for shopping. If manhandled by an amateur, it becomes difficult for the professional to undo any damage.

5. Never submit a impaired case to an agency that does not have an impaired risk underwriter.

6. Never submit a impaired risk to anagency that doesn't have direct access to the reinsurance marketplace.

7. Never submit an impaired case to an agency that cannot give a quote within 24 hours of receiving a completed file

8. Never submit a case to an agency that says the case is too big.

9. Never submit for more insurance than can be placed. The fewer eyes that see the case, the better.

10. Never submit an impaired risk to an agency that represents companies that are not A+ rated.

While you may be bored by the above, it lists major rules that a professional would follow and could be useful if you are a substandard risk.

IMPAIRED RISK: 1996 When one thinks about insurance, they usually are healthy and won't have too many worries about passing a physical. But some people have had past illnesses- heart disease, diabetes, etc. Can they get insurance? Almost positively. Here are some recent examples from Midland.

A 58 year old male, non smoker applies for $250,000. He's 6'0'' tall but weighs 300#. Has history of hypertension and diabetes for 10 years, both controlled with medications. Average blood pressure is 165/95. Approved as a standard non smoker user

A 39 year old female non smoker applies for $100,000. Has history of aortic valve replacement, slight ventricular hypertrophy and hypertension though under treatment and well controlled. Blood pressure 130/85. Approved as standard non smoker user plus $5.00 per thousand flat extra or as an approved standard non smoker user with graded death benefit

A 66 year old male applies for $75,000. A pipe smoker, 6'3" but weighs in at 425#. History of prostatitis, osteoarthritis, had hypothyroidism but controlled with medication. Approved as standard tobacco user plus table 6 rating and face amount reduced to $50,000.

No, it's not perfect, but it does show that insurance can be had by most people. There aren't that many firms that handle impaired risk, but when you need them, they are the only places to go. It is completely illogical to go through a regular insurance agent. The standard firms do not have underwriters that are competent to understand these risks and invariably you waste your time and that of the clients.

FIELD GUIDE TO IMPAIRED RISK UNDERWRITING

(Best Marketing) Believe it or not, you can get insurance- almost to the point of being dead. It's just that it might cost you a lot- even more than the insured amount (maybe there needs to be a guaranteed payment of a debt). Anyway, here is a brief General Description of the initial form to the insurance company.

1. Height

2. Weight

3. Has your client smoked cigarettes within the last 12 months.

4. Does the client use any other tobacco products

5. Has the client ever been treated for

Angina/chest pain, coronary artery disease

Heart Arrythmia (irregular heart beat)

Heart attack

Heart murmur, aortic valve, pacemaker, mitral valve

Cerebral vascular accident or transient ischemic attack

Cancer: Prostrate, breast, colon, testicular

Diabetes

High blood pressure

Liver disorder/elevated liver function test, hepatitis

respiratory disorder

mental disorder/depression

Neuromuscular disorder/multiple sclerosis

Seizure disorder

Kidney disease

Ulcerative colitis or Crohn's disease

Sleep Apnea

Has the client ever been advised to have treatment for or limit the use of drugs or alcohol

6. Has your client received more than two moving traffic violations in the past three years

7. Does your client now or have in the past flown in an airplane as a pilot or crew member

8. Does your client participate in any hazardous activities

Scuba diving

Auto or motorcycle racing

Sky Diving

Mountain Climbing

Other

9. Has your client ever been rated or declined for life insurance.