American General: New non-medical underwriting on Max Accumulator+ and AG Platinum Choice VUL 2

See an update from American General below.

Contact Relationship Manager Bob Hertz, Bob.Hertz@LeClairGroup.com, with questions.

Get Appointed today with LeClair Group to start offering your clients solutions from American General.


Effective April 16, 2018, Max Accumulator+ and AG Platinum Choice VUL 2 policies that fall within predetermined guidelines will be processed with non-medical underwriting; resulting in a fast, convenient path from submission to approval!

This process shortens the underwriting cycle time for many of your healthy clients. For those who qualify, the application process will be less intrusive: no physical exam, no
APS, no lab tests, and no Para-med. Cycle times, from application receipt to underwriting decision, will be reduced significantly as a result.

Non-medical underwriting criteria
• Ages 0-50
• Face amounts:
― Max Accumulator+: $50,000 – $499,999.99
― AG Platinum Choice VUL 2: $100,000 – $499,999.99
• No lab tests, physical exam or APS required for proposed insured
• Up to Best underwriting class available1
• If amount applied for on any new application, plus any coverage issued within the last 12 months, is equal to or greater than $500,000, this new coverage applied for will be subject to age and face requirements for full underwriting

Transition Rules:

  • Paper applications received on or after April 16, 2018, will be setup with the new age & amount requirements, unless the old age & amount requirements are requested in the quote.
    • Max Accumulator+ and AG Platinum Choice VUL 2 quotes generated through WinFlex on or after April 16th will be illustrated using the new age & amount grids.3
  •  All applications with a received date after May 16, 2018 will automatically receive the new age & amount requirements.

FAQs:

Q: Will Accelerated Access Solution (AAS) be available on a non-medically underwritten Max Accumulator+ or AG Platinum Choice VUL 2 policy?
A: Yes, AAS will be available with any non-medically underwritten Max Accumulator+ or AG Platinum Choice VUL 2 application so long as this rider is currently available in the state in which they are applying.

Q: Can you explain the non-medical underwriting process more?
A: Non-medical underwriting means that no labs, physical exams, APSs, or Para-meds will be required from the proposed insured, or considered when underwriting the policy. We will still conduct reviews of the Motor
Vehicle Report (MVR); Medical Information Bureau Report (MIB); and Prescription medication history (Rx Report) as required. Classes table E or better will qualify for the non-medically underwritten products. Your underwriter will make an offer from Preferred Best to table E for your client based on the submitted applications, declarations of Part A and B, supplementary forms, and results of various database searches. This is not a blended rate, your client will receive a “fully underwritten” rate through a non-med process.2 Clients who do not qualify for Table E or better can reapply for a face amount of $500,000 or greater. They would then be eligible for full underwriting consideration; which includes para-med and APS based age and amount criteria.

Q: How is non-medical different from simplified underwriting?
A: Unlike American General Life Insurance’s simplified underwriting process, a case that does not meet the nonmed criteria will NOT automatically be diverted to full medical underwriting or to an underwriter for further
evaluation.

Q: What happens if my client does not meet the non-medically underwritten guidelines?
A: Non-medical underwriting is now the ONLY option for underwriting a case for an individual ages 0 – 50 with a face amount of $50,000 – $499,999.99 for Max Accumulator+ and $100,000 – $499,999.99 for AG
Platinum Choice VUL 2.

If the proposed insured does not meet the criteria, or wants to undergo full underwriting, th