Underwriting

Helpful hints

Quoting

Depending on the plan selected we will cover either 50% or 60% of your client’s personal taxable earnings.

This is gross pay for the employed.
Their share of the net profit as declared to the Inland Revenue for taxation purposes for self employed.
Employed earnings plus dividends for company directors.
We will not take a pension into account if it is due to normal retirement e.g. armed forces, fire service. We will take it into account any pension paid as a result of incapacity at underwriting and at claim stage.

Please make sure your client is not overinsured. Please see information on our ‘claims’ page for how we calculate entitlement to benefit.

Occupations

We charge an aggregate rate for occupation class, therefore provided we can accept the occupation there is no difference between the rate for a class 1 occupation and a class 4 occupation.

Occupation Guide

However, some occupations can only be accepted with a restriction to the plan termination age, a full list is available below:

Restricted Plan Termination Occupations

The majority of occupations with driving as the main duty will be restricted to 60 e.g. HGV, PSV, Road patrol, ambulance driver. If you have a client with an occupation which is predominantly driving please bear this in mind when quoting. If you are unsure please contact the underwriting department who will be happy to discuss it with you.

Applications

We collect medical and lifestyle information through a telephone interview carried out by Medicals Direct. The following documents provide full details of the tele-interview process:

As a Mutual we strive to keep our expenses down for the benefit of our members. We are charged a fee if your client is not available for their interview at the pre arranged time. The nurses at Medicals Direct are available to carry out the interviews in the evenings and on Saturdays to offer the most convenient time for your client. If your client cannot be available for their interview and need to rearrange the appointment please let Medicals Direct know as soon as possible. Providing at least 24 hours notice is given we will not be charged. Please see the guides for full details.

Offering terms

Once we have reached an underwriting decision we will issue a letter advising our terms. During the telephone interview your client will be asked if they are happy for any revised terms to be sent to their adviser. The majority are, however some do request that terms are sent to them directly, in which case you will be notified that the terms have been issued and your client then has the choice of whether to share the information with you or not.

Standard terms

Your client has been accepted without any changes being made to the contract. However there are standard policy exclusions such as drug and alcohol abuse and cosmetic surgery which will still apply. Full details can be found in the Key Features Document and plan terms and conditions which can be found on the product pages. If you have already provided a date for the plan to start we will proceed, however please see the section on start dates for how a date other than 1^st of a month may affect premium collection. If no start date has been provided we will write to you. You can provide the start date by email, telephone or letter

Revised terms

Your client has been accepted with specific exclusions applied to the plan and/or a premium loading. Details will be set out in the acceptance letter; if a premium loading has been applied a revised quotation will also be sent out with the acceptance letter. Your client must sign and return one copy of the acceptance letter within the specified time period and indicate a date on which they would like cover to start (see section on start dates). The second copy of the letter should be retained by the client for their record.

We can offer terms with a maximum of three exclusions and a premium loading.

Postponed

We may not be able to make a final decision if for example your client is waiting for medical tests to be carried out. The application will be postponed for a period after which we will contact you with our requirements should your client wish to reapply.

Declined Applications

In some cases we are unable to offer your client a contract and must decline the application. If the decision is as a result of information provided within the tele-interview we will write directly to your client to explain the reasons behind the decision. Occasionally we may need to write to your clients GP as the reason for rejecting the application may be better explained by a doctor.

Start Dates/DD runs

Premiums are payable for complete months. A plan can start on any day during a month but a complete months premium for that month will be collected e.g. A policy starting on 17^th May would pay a full premium for May. Start dates cannot be backdated.

The Society has two direct debit runs, on 3^rd and 15^th of a month. We cannot collect on any other dates. If the first premium cannot be collected in the month the plan starts, two premiums will be collected the following month.

Declaration of Continued Good Health

If the application has not been put on risk within six months of signing the declaration and/or revised terms have not been accepted within the specified timescale we will require completion of a health declaration.

Any change in circumstances will be reassessed and the terms of acceptance may change. A change in circumstance will include health, lifestyle, occupation, travel abroad and hazardous pastimes.

Please note, the direct debit is only valid for six months from the date of signing, it is likely a new dd would also be required.

Both forms are available to download below:

Policy Documentation

We will send directly to your client a covering letter enclosing their cancellation notice and a new members survey.

Unless you have instructed otherwise your client’s membership folder will be sent to you. The folder contains the schedule, certificate of membership and quotation. Please ensure your client receives their folder. We will also send you copies of the following for your records: your client’s covering letter, certificate of membership and quotation.

We also send a survey for you to complete and return to us in the free post envelope provided.