For Advisor and Broker/Dealer Use Only ©2010 Lincoln National Corporation LNC201104-2053589 Common Cancers In Underwriting With A Focus On Prostate Cancer

For Advisor and Broker/Dealer Use Only©2010 Lincoln National Corporation LNC201104-2053589

Common Cancers In Underwriting With A Focus OnProstate Cancer

Jordan CarreiraVP & Chief UnderwriterLincoln Financial Group

LLA 1304-0034

Agent/Broker use only. Not for use with the public.

For Advisor and Broker/Dealer Use Only©2010 Lincoln National Corporation LNC201104-2053589 2

Common Cancers In Underwriting With A Focus on Prostate Cancer

1) I’m Not A Doctor

2) If I Talked About Prostate Cancer For 45 Minutes….

Some Caveats:

LLA 1304-0034Agent/Broker use only. Not for use with the public.


…..This Would Be You

Common Cancers In Underwriting With A Focus on Prostate Cancer



AgencyOne Underwriting Workshop And Producer Conference

New Agenda:

•Prostate Cancer Updates

•What’s Going On In the Industry

•Inside Lincoln’s Underwriting Shop

•4 Things To Remember About Lincoln




Prostate Cancer Update:

PSA Testing

PSA Limits



What’s Going On In The Industry

What Is The Biggest Problem To Happen In The Life Insurance Industry In The Last 3 Years?



What Is The Biggest Problem To Happen In The Industry In The Last 3 Years?

Hint: It’s Not STOLI



STOLI Aftermath

• Income Verification With 4506T

• Verification Of Info From CPA and/or Attorney




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Trusted Sources Sometimes Are Not What They Used To Be



The Biggest Problem To Happen To The Industry In The Last 3 Years

Low Interest Rates!

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%Low Interest Rate Environment Will Continue To Challenge Our Industry For At Least The Next 2 – 3 Years.



Low Interest Rate Environment


…. Good For Homeowners Seeking Mortgages

& Refinancing

…. Not So Good For Guaranteed Insurance Products

11LLA 1304-0034Agent/Broker use only. Not for use with the public.



AG 38 Legislation On Reserving

European Regulation Changes – Solvency II

DAC Accounting Changes

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Less Profitable Business

Low Interest Rates




The Vast Majority Of Companies Re-priced Their GUL Product Lines In 2012.

Lincoln “Pivoted” To Products Like Indexed UL, Variable UL And Now Treasury Indexed UL In 2013 To Offer Competitive Products And A Comprehensive Product Portfolio Of Solutions For Customers.




New Product Innovation Will Increase.

Accelerated Death Benefit Riders Will Be Added To Product Lines

Linked Benefit Products Will Evolve On Different Chassis







Underwriters Will Be Required To Wear New Hats To Underwrite The Mortality Risk And The Morbidity Risk Of Applicants




New Products Will Offer Death Benefit Protection With Income Available To Help With Disability Or Long Term Care Needs




Look For Lincoln To Introduce A New Product In Late 2013.

“Insurance That Changes With You”



Insurance That Changes With You….

Will Offer Death Benefit, But Like Our MoneyGuard Product, There Will Be Opportunity To Pay Disability Benefits And/Or Later On In Life, LTC Benefits.

19Lincoln Product Innovation!




Predictive Modeling: Lab Scoring & Data Mining

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Labs Are Using Blood Results Compared With SS Death Master File to Determine A Risk Factor Score For Age & Gender

Smart Score And Risk IQ Are Examples

LLA 1304-0034



Smart Score


Predictive Modeling: Lab Scoring

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Predictive Modeling: Lab Scoring

Risk IQ




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Predictive Modeling: Data Profile

Companies Will Implement Data Base Mining Using Multitudes Of Data Points To Better Predict Mortality




24

Predictive Modeling: Data Profile

Marketing Data And Buying Habits Can Help Predict A Lifestyle Model Without Need For Blood Or Medical Info

No, I don’t use tobacco. I just buy it!




Predictive Modeling

- Data Mining Will Help To Reduce Or Eliminate The Need For An Exam Or Fluids At The Younger Ages And Lower Face Amounts

- Your Data Is Constantly Being Monitored

- Charge Wisely…. Pay Cash!!



Inside Lincoln’s Underwriting Shop

Underwriting Philosophy

• Fair• Flexible• Responsibly Aggressive• Industry Leading Underwriting

Teams




2008

Liberalized & Separate Preferred Criteria For Age 70+ For Cholesterol, Blood Pressure & Build

Use Of BMI In Lieu Of Height/Weight

Family Longevity Credit

And We Were First To Offer Preferred Rate For 70+ Diabetics That Meet Certain Criteria

27

Lincoln Underwriting Innovation



2009

No MD Exams

Pharmacy Database Checks To Reduce The Number of Routine APS Requests

Get Up & Go Exams Introduced For Ages 70+

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Lincoln Underwriting Innovations

Older Applicants Continue To Challenge Our Underwriting Skills As They Usually Involve Multiple Impairments, Complicated Medical Histories, With Functional, As Well As Cognitive, Concerns

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Older Age Underwriting



Example Of Challenges We See




2011

Treadmill EKG’s Eliminated!!

Internal Retention Increased To $20 Million

Autobind Increased To $60 Million

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2012

•Impairment Review For Preferred Status

•Foreign National Program Enhancements• Added New Nexus Requirements For A Spouse

And For Having A Substantial Bank Account ($500,000) In A U.S. Bank For A Minimum Of 6 Months To Qualify For Coverage

• 4506T Tax Transcript Introduced – In April 2012

32




Foreign Travel Improvement

Preferred And Preferred Plus For Up To 12 Weeks (3 Months!) Of Travel To Almost Anywhere In The World




Underwriting Innovation

34

- May 2013 – LFG Will Begin Identity Risk Management With Client Checks Through A Vendor

- “Client ID” Verification That The Info Presented By The Applicant Is Correct Through Public Record Data Sources



What’s Going On At Lincoln

Client ID Will Verify That The Social Security Number Is Real, Belongs To The Applicant, And The Address And Phone Match To The Applicant

(Not A Vacant Lot)



Inside Lincoln’s Underwriting Shop 2013

Reduce Or Eliminate The Consumer Inspection Report (age 70+ will still require cognitive screening)

EKG’s ~ Are They Really Needed?

Medical Impairment Review• OSA • Review PSA Criteria

Financial Underwriting Updates• Template For Financial Underwriting• Insurance as an Asset Class• Estate Growth



4 Things To Remember About Lincoln

1. Table Reduction Program

2. Non-Smoker Rate Available For Admitted Cigar, Pipe & Chewing Tobacco Users

3. Preferred Family History Criteria For Cancer

4. Responsibly Aggressive Underwriting Philosophy With Fair and Balanced Decisions.

LLA 1304-0034



Questions?


Lincoln Financial Group is the marketing name of Lincoln National Corporation and its affiliates.

Documents

For Advisor and Broker/Dealer Use Only ©2010 Lincoln National Corporation LNC201104-2053589 Common Cancers In Underwriting With A Focus On Prostate Cancer