Life insurance
New Business & Underwriting News

 
 
 
 

A note from Brad Craig, AVP – New Business & Underwriting Operations:
 

I hope you and your family are safe and doing well during these difficult times. I also want to take this opportunity to thank you for your business.

Here are the key topics I’d like you to be aware of this month:

  • Time service continues to be stressed as new application counts remain well above anticipated volume.
  • We introduced a temporary change for Principal Term applications that we believe will help improve overall service time by providing more in-good-order applications and greater opportunities to leverage our automated underwriting capabilities.
  • Principal® Life Online surpassed 25,000 applications for the year, and we’re expanding its availability.
  • There will be opportunities for you to learn more about how to most efficiently submit business with Principal.

July time service
 

The July results aren’t significantly different than June. But keep in mind that these reflect a point-in-time measurement and aren’t necessarily indicative of where things were during the entire month. We believe the results of both internal and external initiatives we’ve taken will result in meaningful improvements in the coming months.

New temporary guidelines
 

Last week, we announced a couple of application submission changes:

  • All Principal Term applications with face amounts of $500,000 and less must be submitted via drop ticket, except for cases where the insured is a resident of New York.
  • The required minimum face amount for informal applications is increased from $1 million to $3 million. Additionally, the maximum insured age for Principal Survivorship Universal Life Protector IIISM for informals is now 75.

I can assure you we made this change only after a great amount of discussion and deliberation. We recognize it may have an impact on the way you submit this type of business, which held a great amount of weight. But ultimately, we believe this relatively straightforward adjustment can have a positive effect on time service without causing significant disruption to your business practices. We’ll monitor the situation closely and communicate any additional changes promptly.

New expanded availability of Principal Life Online
 

I’m excited to announce a change that will allow you to make Principal Life Online available to even more of your clients. For applications where the insured and owner are the same, face amounts up to, but not including, $5 million, will be eligible for online completion. This increase in the maximum face amount is effective August 7. Once a drop ticket is submitted, we’ll send a link to the client to complete the rest of the life insurance application.

Use of Principal Life Online is growing quickly. You can hear about its benefits from one of your peers who has used it both professionally and personally.

Save the date 

We’ll be holding online training sessions on how to efficiently submit business with Principal, including how to submit drop tickets and use Principal Life Online. Two options will be available. The content covered will be the same for each. Choose the one that works best for you. 

  • Monday, August 17, 1 p.m. CST
  • Tuesday, August 18, 1 p.m. CST

Stay tuned for additional details.

Brad


Change to policy mailings
We’re now mailing policies via U.S. Postal Service First Class Mail. This change was made, in part, due to COVID-19 where many offices were closed resulting in delivery delays. Policies will continue to be sent on Tuesdays, Thursdays, and Fridays. But the change in delivery method will mean that policies may take a few extra days to reach you.


Naming a secondary addressee
Certain states require new applications to include a secondary addressee. Form AA4901C is used to list this additional addressee, and it is automatically included in the application packet for required states (CA, CT, FL, ID, ME, MT, NJ, NY, RI, VT). Now, this form will be included in the application packet as optional for states that don’t require a secondary addressee. If used in one of the optional states, the form should be submitted at the same time as the other application forms.

 
 
 
 

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Insurance products issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Co. Securities offered through Principal Securities, Inc., 800/247-1737, Member SIPC and/or independent broker/dealers. Principal National, Principal Life and Principal Securities are members of the Principal Financial Group®, Des Moines, IA 50392.
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LF1281B | 1291912-082020 | 08/2020