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Fall 1999
Disability Committee Review
By Mary Everett
Relistar ReThe Disability Committee sponsored 4 presentations in Baltimore and ÒLet's Talk ShopÓ for over 50 participants. In a session on regulatory and legislative issues, Terry Sorota of the American Council of Life Insurance discussed proposed legislation related to privacy and ERISA. Keith Andrews of Andrews Consulting reviewed the new ÒManaged DisabilityÓ policies regarding contractual provisions and state regulations.
David Mitchell of Disability RMS presented information from their 1998 Disability Profit Study which included positive results with the net LTD gain up to 10.5% for the responding companies. Companies with smaller blocks of LTD (under $25 million in premium) showed both the strongest growth and the best profitability.
Walter Heindl, Senior Counsel with CIGNA, presented a summary of recent ADA case law which could impact the group disability market and where this evolving body of law may be headed. Mark Andruss of Fortis Benefits and Tracie Foster of Hartford Life presented ÒDifferentiation via Policy Language and the Impact on Transfer Analysis.Ó In this discussion, they contrasted the theoretical cost of each company's Òstandard languageÓ which would issue in response to the same RFP and the adjustments that might be appropriate in evaluating the experience generated under different policy language.
Our ÒLet's Talk ShopÓ roundtable discussions included current attitudes towards extended rate guarantees, underwriting hospitals, using the Internet as an underwriting tool, incidence and lapse rates, impact of subjective limitations language, integrated disability, and AIDS.
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