Financial Advisors should consider two advantages they derive from obtaining a signed generic HIPAA with every life insurance application. First, a signed HIPAA is required by law, if you wish to discuss medical underwriting details with third parties. Given that a relatively high percentage of applications result in underwriting challenges, a HIPAA enables you to act in a fiduciary capacity. With it, you can negotiate your client’s risk profile with other insurers. The second advantage of obtaining a HIPAA is to show your client an extensive list of brand name insurers. They are reassured you will negotiate for the best possible policy from among the most highly regarded insurers.
Life insurance buyers, regulators, and professional codes of ethics increasingly require you to survey the market in a fiduciary capacity. A signed HIPAA allows you to comply with that requirement by being able to “shop” the market.
After you and your client establish a need for insurance, you likely recommend they apply with Carrier A, based on information you have at that time. But what if new underwriting evidence derails that initial strategy? With a signed HIPAA, you’ve already received the applicant’s permission to redirect underwriting to a more suitable carrier.
HIPAA as a Positioning Tool
Our HIPAA also provides you with an excellent positioning tool. Applicants will be impressed by the extensive list of brand name insurers you can represent. Many will derive a certain level of comfort, knowing you will go to bat for them by leveraging our industry’s top carriers to their strategic advantage.
Generic HIPAA with Every Life Insurance Application
Consider obtaining a signature on our generic HIPAA whenever you obtain a life insurance application; E-signatures are now accepted. Incorporate our HIPAA into your firm’s application process. Then, in case of underwriting challenges, you’ve already obtained the authorization our medical directors need to negotiate your case elsewhere.
Are you currently experiencing underwriting challenges with one of your life insurance applicants? Do you already have a signed HIPAA? If not, please obtain one. Submit it, together with all other available information, including the paramedical exam, lab results (not just the lab ticket), EKG, and any underwriting comments from the original underwriter. We’ll have our medical directors review that information so they can guide us toward a better outcome. Depending on the complexity of the case, we may have a response within 24 hours. Complex cases with extensive medical records may require several days of negotiations.
Would you like to schedule a call (or Zoom) so we can discuss a current underwriting challenge? Talk to your CPS Advantage representative, or, for a first available consultation, feel free to email us and we’ll get back to you ASAP.