Broker World

Allianz Life Insurance Company of North America (Allianz Life®) today announced the launch of accelerated underwriting and ApplyNOW, new technology available to help streamline the application process for Allianz Life Pro+® Fixed Index Universal Life Insurance policies. The accelerated underwriting process has fewer underwriting requirements for eligible applicants, resulting in a faster, better underwriting experience. The ApplyNOW digital tool will allow financial professionals to submit Allianz Life Pro+ applications online, resulting in more complete and accurate submissions.

“Providing the best possible customer experience is a crucial component to building trust with both financial professionals and the end customer,” said Jason Wellmann, senior vice president of Life Insurance Sales for Allianz Life. “These new initiatives offer a more streamlined underwriting process to help ensure clients establish the necessary protection for their life and finances.”

With the accelerated underwriting program and mobile-friendly ApplyNOW tool, the entire underwriting process can be reduced from as many as 35 days (traditional paper application and full underwriting) to as little as three days. All applications that meet the eligibility criteria will be considered for accelerated underwriting. ApplyNOW technology is also available for the application process with Allianz Life annuity products.

For more information, visit www.allianzlife.com/lifeproplus or contact the Life Case Design Team at 800-950-7372.

Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best Companies to Work For in 2017, has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products. In 2015, Allianz Life provided a total of $2.4 billion in benefit payments that supported policyholders’ financial objectives. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with 142,000 employees in more than 70 countries worldwide. More than 85 million private and corporate customers rely on Allianz knowledge, global reach, and capital strength to help them make the most of financial opportunities.

Allianz Life Insurance Company of North America offers insurance and annuities in all states except New York. In New York, products are issued by Allianz Life Insurance Company of New York. 

Mutual of Omaha CEO James Blackledge has announced the appointment of Brad Buechler to executive vice president of Senior Health Solutions—a new business unit that will align resources and functions around the senior market segment.

“Brad is uniquely qualified to serve as the senior segment leader,” Blackledge said.  “He has been the architect of our successful medicare supplement strategy and has been an enthusiastic leader in our efforts to better understand our customers’ needs and expectations in order to offer them the best solutions.”

Buechler joined Mutual in 1991 as an actuarial student and has held a variety of positions, including roles in group insurance, corporate asset/liability management, individual insurance and strategic planning.  Before assuming his current role in March 2017, he served as senior vice president of Individual Retirement Solutions in the company’s Individual Financial Services business unit.

Buechler is a graduate of Nebraska Wesleyan University and is a Fellow of the Society of Actuaries and a member of the American Academy of Actuaries.  He is also a member of the Offutt Air Force Base Advisory Council and the FBI Citizen’s Academy Alumni Association.

Mutual of Omaha is a full-service, multi-line organization providing insurance, banking and financial products for individuals, businesses and groups throughout the United States.  For more information about Mutual of Omaha, visit www.mutualofomaha.com. 

Ohio National Financial Services is pleased to announce it has launched a new fixed indexed annuity designed to help customers reach their long-term retirement goals.  

The ONdex fixed indexed annuity, which joins the company’s annuities and retirement product portfolios, provides customers the opportunity to accumulate assets by earning tax-deferred interest, subject to limitations, based in part upon the performance of a pricing index.  

The ONdex fixed indexed annuity can be a good fit for someone who is retired or close to retirement age because it provides growth opportunities without the risk of losing principal from market downturns.  It may be a good option for customers looking for a fixed income alternative.  

“It is a strong addition to our annuity line of business, offering additional product breadth for accumulation and retirement planning, and is ideal for those with a conservative risk tolerance,” said Michael J. DeWeirdt, CFA, FRM, Ohio National’s senior vice president, annuities strategic business. 

Highlights of the new ONdex fixed indexed annuity include:

• Participation in market appreciation.
• Two versions for clients with different retirement time horizons and liquidity needs.
• A contractual minimum interest rate guarantee that ensures the contract’s value never decreases as a result of losses an index may experience.
• The choice of three quality indices.

Tracing its corporate origins to 1909, Ohio National markets a variety of insurance and financial products through more than 50,000 representatives in 49 states (all except New York), the District of Columbia, Puerto Rico and through affiliated operations in South America. Additional subsidiaries operate in New York and Connecticut. As of December 31, 2016, its affiliated companies have $41.8 billion total assets under management. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Ohio National is proud to be named a “Top Workplace” in Cincinnati for seven consecutive years by Enquirer Media (June 2010-2016) and employs more than 1,300 associates. Visit www.ohionational.com for more information. 

The American College of Financial Services, the nation’s only nonprofit, accredited college devoted to financial services, has launched a scholarship program aimed at increasing the number of African Americans in the financial services profession. This fund is part of a broader coalition effort to double the number of African American financial advisors over the next decade.

According to the latest data from the U.S. Bureau of Labor Statistics, only 7.6 percent of financial advisors are African American, despite the fact that African Americans account for about 13 percent of the nation’s population. To challenge this, The American College African American Scholarship program is bringing awareness to and helping close the racial gap by providing African American students who are in college, just completing their college work, as well as career changers with an opportunity to earn a professional credential and find work in financial services.

The scholarships will cover 100 percent of the cost to obtain a professional designation from The American College of Financial Services for applicants who are accepted into the program.

To kick off the effort, The American College of Financial Services is providing scholarship funding of $200,000. With the help of individual and corporate partners, the goal is for the fund to grow into the millions. Additionally, The College’s President and CEO Dr. Robert Johnson is challenging stakeholders throughout the financial services community—from academic institutions to professional associations and financial services companies—to work together to reach the goal of doubling the number of African American financial advisors in the next 10 years.

“One of the biggest problems facing the financial services profession is a profound lack of diversity,” said Dr. Johnson. “We believe all of us in this field have more work to do in recruiting, educating, placing, and supporting thousands more African American financial advisors. The face of this profession needs to change, and the change can start right now if all of us pull together.”

“Overall, Americans are woefully underprepared for retirement, and for African Americans it’s even worse,” said Professor Jocelyn Wright, who helped create the fund and is an assistant professor at the College. “If there were more black advisors providing financial services in black communities, then more black families would be better prepared for retirement. One of the major objectives of this scholarship program and the larger effort to double the number of African American advisors over the next decade is to help address that retirement crisis.”

The College intends to award scholarships by the end of the year. For more information about the scholarship program, go to http://theamericancollege.edu/double2027.ut the scholarship program, go to http://theamericancollege.edu/double2027.

In the competitive world of life insurance underwriting, the standard policy often isn’t good enough.  In fact, when compared with preferred and super preferred illustrations, it seems to both broker and client as if it were a rated policy.  A standard policy prices out to the “normal” expected mortality of an applicant for age, sex, and normal predicted longevity that most people when showed the projection would be quite in agreement with.  However, with positive health factors and a clean health history, preferred is the new standard and everyone involved is looking to get that goal.

Everyone can’t be preferred however, and as such, in order to maintain proper pricing companies have become increasingly strict in their parameters that must be met. If everyone were preferred, the discount for such a policy would be negligible.  As such, in order to have mortality play out according to plan, policies are priced for certain percentages meeting these individual guidelines.  So if the cut-offs are strict, it pays for everyone involved who is “gunning for preferred” to be on the same page and maximize the odds of that successful outcome.

What are some of the “trip-ups” that perhaps are within your control that you can positively influence?  The exam is at the forefront of this.  Most companies allow a look at their build guidelines, and may be strict even to a pound or two over the published limits.  So if you’re close, do the obvious.  Dress light.  Empty pockets.  Don’t eat a big meal beforehand.  It sounds obvious, but the difference can mean a lot of money over the term of the policy.

Cholesterol and triglyceride targets are also strict.  While many companies no longer insist on a fasting specimen, put the odds in your favor and fast anyway.  Cholesterol is affected slightly, HDL usually not much but triglycerides markedly.  If you have a tendency toward higher fasting blood sugar, fasting is another good idea (except if you are taking insulin or prone to low blood sugar).

Blood pressure is another area where a subjective component can place you out of preferred range.  If you’ve hurried to get to the exam, take a few minutes to settle down before the examiner takes your blood pressure.  Deep breaths and calmness do help.  If the reading is a bit higher than you normally run, ask the examiner to take it again after he or she works on another part of your application.  If you’re having an extremely stressful day, perhaps that’s not the best day for an insurance exam.  

Explanations for conditions on your exam really help in a proactive manner.  Since the underwriter’s first impression is an important one, think about what might require a little extra explanation for anyone looking over your health records.  If a doctor has you on a medication for an off-label indication (sometimes a medicine is given to decrease risk of metabolic syndrome and not diabetes for instance) let that be known.  If there a was a positive change in your health, weight, or previous condition that might have kept you out of preferred in the past, make a note of that on your application.  On a senior supplement, make sure the examiner knows all the things you can do physically, and all the organizations, tasks, and groups you participate in that show a vital individual.  If a doctor suggested testing that you didn’t have done, explain why and what was done instead that addressed the problem that you and the doctor were initially worried about.

Finally, your personal history and family history are important considerations for preferred. Preferred considerations (particularly super preferred issues) are strict on family histories.  If a first degree relative died of a condition that would normally knock you out of preferred consideration, but there was an extenuating circumstance, be sure the application notes that.  Your sister may have died of cancer, but if it was vaginal cancer and you are a male, point out that obvious fact.  If your Dad died of heart disease but he was a drinker and a three pack a day smoker, and you have already outlived him, make that known.  If an early death of a relative was not something that would be passed on genetically or was the result of a circumstance that doesn’t at all apply to your own health, noting that helps as well.

Many of the things that might rule an applicant out of preferred are ones that are legitimate concerns on the part of an underwriter.  The reasons are clear, and the risk is well defined.  However, many of the smaller factors have a controllable component that can really place you in a better risk category if you are aware of them and can take the small steps to modify the result.   A little attention and prevention can make a big premium difference over the course and term of the policy. 

Berkshire Advisor Resource, Inc., and Wilson Brokerage Services today announced a merger that will create a new company, Income Protection Resource Group, LLC.  The merger combines two leading insurance brokerage firms. Income Protection Resource Group, LLC, will provide case design and product knowledge in the following areas: disability, critical illness, long term care, life, annuities and specialty insurance. This new company will have a larger market share, more national coverage, and more product solutions for their advisors.

The combined company expects to realize synergy of operations and enhanced service levels. “We’ve had a business relationship for a number of years,” says T. Patrick Wilson, president of Wilson Brokerage Services, “but we have known each other for 20 years. We have combined because we want to be the preeminent brokerage firm in the country. Bringing our resources, our talent, and our systems together will allow us to better serve our broker community.”

“This merger affords Income Protection Resource Group, LLC, the ability to serve brokers in all time zones across the country,” said Andrew W. Mathews, president of Berkshire Advisor Resource, Inc.

The advantage to the broker community is a depth of expertise, an increased amount of product solutions, and advanced case design. Together, the teams from Berkshire Advisor Resource, Inc., and Wilson Brokerage Services have more than 200 years of expertise in the insurance field.  “We now have the products, the expertise, the solutions, and the advanced case support,” said Wilson.

The company will continue to maintain offices in both Denver, CO, and Cincinnati, OH.

(The author would like to thank Teresa Carano, CFC, CIPP/US, CIPM, FIP, senior privacy specialist and compliance analyst at WageWorks, for her invaluable contributions to this article.)

The U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR) is conducting Phase 2 HIPAA (The Health Insurance Portability and Accountability Act of 1996) audits. About 167 employers have received notifications, with more audits to come. The audits review the policies and procedures adopted and used by health plans (covered entities); however, the Phase 2 Audit guidance suggests a focus on the Notice of Privacy Practices (NPP). 

Background
The HIPAA Privacy Rule requires health plans to develop and distribute a notice that provides a clear, user friendly, explanation that describes the privacy practices of health plans and how an individual can exercise their individual rights. 

There are also specific requirements for notice content. This includes how the covered entity may use and disclose protected health information about an individual, the individual’s rights with respect to the information, and how the individual can exercise their rights including how the individual may complain to the covered entity. 

Providing the Notice
The notice must be made available to any new enrollees at the time of enrollment or at any time upon request. It also must contain an effective date and be made available on any website that provides information about the plan’s benefits. If revised, notices must be provided to currently covered individuals within 60 days of any material revisions. If no material revisions occur, the health plan must notify participants in the plan of the availability of the updated notice and how to obtain the notice at least once every three years. Many employers will send the notice of availability every year to simplify this compliance requirement.

Review and Update Notices Now
Although HHS provides a model notice, notices are a reflection of employer practices. Employers must make certain those practices align with their notice. Employers must also confirm they have internal procedures to manage the actions stated in the notice.  The notice should be reviewed now. Some specific areas to review include the following:

• Are the health plan name, address, and website on the notice accurate?
• Does the notice include the Privacy Officials’ phone, email address, and other contact information?
• Is there an effective date on the notice?
• Is there a list of individual rights included and does the employer have internal procedures to respond to an individual’s request? For example, how are individuals’ rights to request confidential communications handled? 
• Are the health plan’s uses and disclosures of health information correctly described? This may require a survey of the uses and disclosures within the health plan as well as those entities outside of the health plan that may receive plan information. There are, of course, permitted uses and disclosures so the review needs to confirm if the uses and disclosures are accurate and permitted under the Privacy Rule. 
• Is there a description of any state or other laws that require greater limits on disclosures? For example, “We will never share any substance abuse treatment records without your written permission.” If no laws with greater limits apply to your health plan, no information needs to be included. 
• Was personal information ever marketed or sold with written permission? An area to review includes wellness programs, including any mobile or fitness devices provided.  
• Also included must be instructions on how an individual will be provided a new notice or how they can request a notice or file a complaint.

Keep in mind that the notice is a reflection of individual employer practices and internal procedures for each welfare benefit plan. Make certain it contains all required elements since it seems to be a focus point of the Phase 2 Audits. Now is the time to review and update notices to reflect all aspects of privacy practices.

The information contained in this article is not intended to be legal, accounting, or other professional advice. We assume no liability whatsoever in connection with its use, nor are these comments directed to specific situations. 

OneAmerica today named industry veteran Pat Foley president of Individual Insurance and Retirement Services, positioning the company for continued growth in retirement services (RS) and the individual insurance marketplace. Foley, who has served as president of the Individual Life and Financial Services (ILFS) division at OneAmerica since 2013, is a proven business builder with a deep background in distribution and operations.

During the last three years, OneAmerica has doubled in size and grown its workforce by 40 percent. The RS business has contributed to that growth, both in plans and in assets under administration as a result of recent key acquisitions.

“The accomplishments of our retirement services team in the past have been exceptional, and we see tremendous opportunity ahead in the RS marketplace,” said OneAmerica President and  CEO Scott Davison. “Pat’s 30 years of experience in financial services will serve us well as we look toward the future.”

Additionally, under Foley’s leadership, the ILFS division has made consistently strong gains across all channels and established a leading market position with their Care Solutions, asset-based long term care product suite. Engaging Foley to lead both businesses sets the stage for future growth.

“OneAmerica has established itself as a leader in retirement services. We know where we compete, and we know how to win,” said Foley. “A number of key growth initiatives are well underway in the retirement services division, and I look forward to continuing these efforts in coordination with our talented team and network of financial professionals.”

Foley’s new role is effective immediately.

A national leader in the insurance and financial services marketplace for 140 years, the companies of OneAmerica help customers build and protect their financial futures. OneAmerica offers a variety of products and services to serve the financial needs of their policyholders and customers. These products include retirement plan products and recordkeeping services, individual life insurance, annuities, asset-based long term care solutions and employee benefit plan products.

Products are issued and underwritten by the companies of OneAmerica and distributed through a nationwide network of employees, agents, brokers and other sources that are committed to providing value to customers.

To learn more about OneAmerica’s products, services and the companies of OneAmerica, visit www.oneamerica.com/companies.

Allianz Life Insurance Company of North America (Allianz Life) announced today that it has launched the new Retirement Foundation ADVSM Annuity, the first fee-based fixed index annuity (FIA) offered by Allianz Life. Retirement Foundation ADV features benefits such as protection of principal and credited interest from market downturns, tax deferral and the potential to earn interest based on external market indexes, all in a fee-based solution. Retirement Foundation ADV also offers guaranteed income for life and a death benefit for beneficiaries.

“Retirement Foundation ADV was designed for consumers seeking a fee-based FIA that offers the opportunity for increasing income as a part of their overall retirement portfolio,” said Allianz Life Senior Vice President of Product Innovation Matt Gray. “There is a growing market demand for fee-based products and we believe Retirement Foundation ADV will be well received.”

Retirement Foundation ADV has a seven-year withdrawal charge period and can help clients address both phases of retirement: accumulation—by potentially earning interest through a choice of index allocations, and income—in the form of lifetime withdrawals. The FIA includes the income benefit rider that is automatically included at an additional cost, which guarantees to increase income withdrawal percentages beginning at age 45 for every year a customer waits to begin taking income. The choices for receiving lifetime income withdrawals are available as early as age 50.

With Retirement Foundation ADV, clients can receive their income via predictable payments that remain the same throughout their lifetime, or, if clients are concerned about the rising costs of living during retirement, via payments that have the opportunity to increase in exchange for a lower initial payment percentage.

Retirement Foundation ADV uses a simple design with one crediting method that brings growth potential provided by four index allocation options or a fixed interest allocation option. Additional features of Retirement Foundation ADV include a cumulative withdrawal amount, a nursing home benefit, a flexible annuity option rider, and a flexible withdrawal rider (available for an extra fee).

For more information about Retirement Foundation ADV visit www.allianzlife.com.