Zurich Financial Services has announced it is removing compulsory Practising Medical Attendant’s Report (PMAR) requirements from virtually all new business applications for death, TPD and most income protection policies.
This is the headline initiative accompanying the release of the insurer’s latest product upgrade, to take effect from 29 September 2011.
Under the new underwriting rules, Zurich has scrapped compulsory PMARs for death cover up to $5 million, TPD cover up to $3 million and income replacement cover up to $15,000 per month, for all ages.
… effectively we have all but totally scrapped mandatory PMARs for death and TPD cover
Philip Kewin, Zurich’s General Manager Sales and Marketing, Retail Risk, noted that with over 99% of new death and over 98% of new TPD applications within these limits, “… effectively we have all but totally scrapped mandatory PMARs for death and TPD cover.”
Mr Kewin added that because PMARs rely on the client’s doctor for completion, they can often slow the application process right down: “While we still believe it is prudent to obtain PMARs in some circumstances for larger cases, removing them for the vast majority of cases will allow clients to get covered much quicker,” said Mr Kewin.
Other underwriting-related improvements include:
- Graduate cover – revised sum insured amounts for eligible occupations and removal of the waiting period before cover can be applied for
- Changes to medical and financial underwriting requirements, designed to ‘… improve the underwriting experience’
- Three improved Engineering occupation ratings. An improved rating also applies to Occupational Therapists.
- Agreed value financial endorsement – may now be applied for as part of the process via Zurich’s LifeXpress electronic application system. Financial requirements apply from dollar 1.
The product focus within Zurich’s upgrade has centred on its trauma insurance proposition for advisers and their clients, where key changes/enhancements include:
- Introduction of three new trauma conditions covered under Zurich’s Extended trauma benefit:
- Advanced Diabetes
- Pneumonectomy
- Severe Rheumatoid Arthritis (previously covered under the Partial trauma benefit)
- Improved definition of Malignant Cancer, which allows ulceration to be considered as evidence of malignant melanoma
- Enhanced definition of Carcinoma in Situ
- Other definition improvements or benefit extensions for:
- Aorta repair
- Cardiomyopathy
- Primary pulmonary hypertension
- Chronic liver disease
- Dementia
- Major head trauma
- Parkinson’s disease
Zurich also advises the terms of its carer benefit have been extended to allow a claim for a spouse stopping work. The carer benefit will now be paid for a life insured or the spouse of a life insured who has to stop full time work to care for a seriously ill child.
These enhancements also apply where appropriate for trauma benefits and features inside Zurich’s income protection products.
