GUM! (GROUP UNDERWRITING MANUAL)
GUPI has been progressing with a long desired project: production of an Underwriting Manual. The project, sponsored by Bob Allen, began in January with a project team of Fred Whitfield, Max Alvis, and Larry Brown along with the input of other underwriters on specific topics.
A primary goal of the manual is to provide consistency within GUPI, while maintaining flexibility. It will also serve as a reference tool and training guide. Many controversial topics are resolved in the manual. Gray areas are also addressed, and where a guideline is not provided, examples are given to demonstrate the extremes.
The first phase of the manual is targeted for completion and distribution this summer. All underwriters and group offices will get copies. The following sections will be included: Introduction and Overview, Insurance Code Issues, LTD, Commissions, and Glossary. The Commissions section will have rules, examples, and calculation aides.
LTD is the first coverage section to be produced. Each item in the rate manual is explained, providing the philosophy and theory behind the rating impact. Examples of key topics are availability of “own occ to 65” and definitions of insurable earnings. Vic Davalillo is preparing a section on experience rating. Each topic points out “red flags” to be watched for by group reps and underwriters, such as a person with very low earnings in a small group (is the person really a full time employee?) or a person who might be the president’s spouse. Reasons why certain flags might not be of concern are also addressed (a premium violator who is the only professional in a small group).
Some of the general topics (not specifically matching rate manual items) are PDAs vs. CFRs, use of the group rep’s bank, and alternate funding methods. ProQuote! is considered for each topic; limitations and the need for manual overrides are pointed out.
Each portion of the Underwriting Manual will be approved by the GMC with counsel from Group Legal. When you want to know if we’re likely to offer own occ to 65 for ministers, you’ll be able to look it up in the Underwriting Manual.