made specific arrangements to secure a higher risk offering a lower rating through special treaties.

Very often, results and offers can be more subjective than one might expect. At the same time, a relationship with an insurance company or underwriter can also make a difference. Whatever the circumstances, it’s beneficial to have a total grasp of what is possible with as many insurance companies as possible and to be diligent in maximizing the possibilities with each carrier.

Insurance companies can offer a vari-
ety of underwriting programs. Here
are several:
•;Table Shaving. A number of carriers
will offer a reduction in their un-
derwriting assessment on their UL,
SUL or WL products up to age 70
with a table rating of C. This can
reduce the rate to a standard non
smoker rate for up to $10 million
per carrier.

grams offer up to three tables with no credits for certain impairments.

•;Niche Programs. An insurance company will often carve out a unique underwriting niche where there is little or no competition in their underwriting offer. Niches include liberal treatment for physical build, family history, hobbies, tobacco usage, controlled high blood pressure, bad habits, driving records including DUI, alcohol use, financial underwriting multiples offered and cholesterol and others.

• Upgrade Programs. One program
will offer an upgrade from standard
to preferred on permanent coverage
if the case is a standard rate before
credits. Another company will of-
fer a conversion of its term with a
Table C to a standard non smoker
UL policy if converted within three
years. Cigarette smokers can obtain
non smoker UL rates for three years
as a non smoking incentive. Anoth-
er carrier upgrades its term or UL
one class to a standard plus or pre-
ferred non smoker with the use of
a credit.

•;Use of Reinsurance. Many captive
producers first experience with re-
insurance is when they are told that
the company can use its reinsurers
to determine if there is a better of-
fer than secured with their formal
application. Usually, the request
for an insurance company to check
with reinsurance places the original
offer in jeopardy, if none of the re-
insurers see the case as good as the
primary carrier. If that happens, the
underlying company will rescind
their offer. This calculated risk can
result in an improvement in the
original offer. In one instance, an
insurance company allows for and
assists with reinsurance without
jeopardizing the original offer. The
skilled use of reinsurance is criti-
cal when dealing with cases that are
larger than a carrier’s retention or in
Jumbo cases where the use of rein-
surance creates its own issues. This
•;Use of Available Credits. Knowledge
of the mechanics and workings of
underwriting credits is invaluable
in securing the best offer. Insur-
ance companies have a wide array
of credit programs, most of these
are unique to a particular compa-
ny. Sometimes a carrier will treat its
credit program as classified infor-
mation or as its “private insurance
recipe” for impaired risk under-
writing and they can be unusually
proprietary about them to the point
of obscuring all the details. It’s im-
portant to note that some credit
programs are available up to age
75 or 80 and others may be avail-
able with a few carriers for term life
insurance as well as permanent cov-
erage. A few companies offer their
credits in conjunction with table
shaving. When this occurs, the pro-
posed insured can benefit by having
a manual rate of table 5 or table 6
offered with a standard non smoker
policy. Some insurance companies
have a maximum of four credits or
tables available. Others will credit
policies up to a table 6. They will
not apply credits when the risk is
higher than a table 6. Other pro-