If you have been following along on our case studies, you know that MIB has been analyzing data captured from our new contributory database, which contains in force and terminated policy data as well as pending insurance activity. The analysis replicates Alerts that will be provided to members who contribute to the database and participate in the MIB Total Line Service. The case studies, which use REAL data from one of our members, have provided unique insights into areas of potential risk, such as stacking and/or churning.
In this case study, the fourth in our series, an application was received for $200K in Term Life coverage. The analysis revealed another pending application of $200K, as well as three in force policies adding up to an additional $380K of coverage – all for Term Life policies across different carriers.
What does this information say to you? It would be interesting to find out if all the policies were disclosed on the application. Additionally, the underwriter may want to pursue additional requirements on the applicant to make sure he isn’t stacking coverage to avoid the discovery of an undisclosed medical condition or social behavior.
Below is a copy of the full Total Line Alert for this case study (You can also view an expandable version of this Total Line Alert).
This is a real MIB member. Current Alert users report finding many instances of undisclosed in force policies! Is your company at risk?
If you haven’t yet signed up for the MIB Total Line Service, how would your company become aware of this type of activity? The IAI provides members with shopping activity, but how can you verify which of those applications went in force? By participating in MIB Total Line Service, your underwriters will be armed with the information they need to understand total coverage exposure risk. This will enable them to proactively identify patterns and behaviors that may warrant further investigation, such as signs of potential stacking, and pivot to traditional underwriting or seek additional requirements prior to approving the coverage.
The MIB Total Line Service
The Total Line Service provides alerts, delivered during the underwriting process, that reflect the total amount of in force and pending life insurance coverage for an applicant. In addition, the alerts include a variety of policy information, including any terminated coverage.
Learn more about how you can empower your underwriters with total coverage exposure data with the MIB Total Line Service by visiting: https://www.mibgroup.com/solutions/total-line-service