Standard Insurance Company Individual Disability Insurance Manual 12288.22 Revised September 5, 2012 Occupation Classification Overview The underwriting process starts with a Change in Occupation clear understanding of the business in which the proposed insured is engaged Reduction of premiums for a change in and the duties of the occupation. occupation will be considered after a Duties is the key word. The applicants permanent change, other than due to must clearly state what they do for a retirement, to a lower premium rate living – the duties of the job are occupation. The insured must have relevant, not just the title. Please avoid performed in the less hazardous general terms such a salesperson, occupation continuously for at least executive or president, without further one year and have no intention of description. A complete description of returning to the primary duties of the duties is required. previous occupation. If an individual has multiple or part-time When underwriting a request for occupations, the occupation reduction of occupational premium, in classification will be determined by the addition to evaluating the change in occupation with the greatest risk. occupation, The Standard will consider build, medical history and Classifying Occupations impairments, habits and all other underwriting factors. An insured who A particular job and job duties are has changed to a lower premium rate generally classified in accordance with occupation, but who has become a the hazards of the work and the higher risk for some other reason, will difficulty involved in returning to work. not qualify for improvement in the occupation class. Other factors may also strongly affect the claim experience, such as the social Any premium refund will depend on or economic environment. For example, the circumstances of the particular the disability income claim experience case. In no event will premium be for chiropractors, dentists and refunded for more than one year prior employees of restaurants and hotels is to the date notice of change was higher than the actual hazard would received at the home office. Therefore, seem to warrant. it is important that prompt notice of an occupation change be given to The Selected occupations may have certain Standard. other qualifications or requirements resulting in a more or less favorable classification. These requirements will be listed either with the occupation or in the Special Occupation section beginning on the following pages. FOR PRODUCER USE ONLY – NOT FOR USE WITH CONSUMERS This manual is not a contract. It is intended as a general reference tool only and does not reflect exact contract language. Provisions and availability of certain policy benefits and riders may vary by state. All benefits and riders are subject to underwriting considerations and evaluation and reinsurance availability. 1 Standard Insurance Company Individual Disability Insurance Manual 12288.22 Revised September 5, 2012 Occupation Classification Using the Occupation Full-time Employment Required Classification List The proposed insured must work 30 Some occupation classifications may hours or more per week at the primary be found by the name or type of occupation. specific job or occupation, such as “accountant,” “barber,” “nurse.” For Part-time or Multiple others it may be necessary to refer to a Occupations general industry or activity, such as “agriculture,” “bank,” “computer,” Any part-time occupation(s) must be “construction,” “medical services,” etc. shown and described. Part-time Since no list can be all-inclusive, if an income is generally not included to occupation is not listed or there is any determine the benefit amount that may doubt as to the probable classification, be issued. The occupational contact your home office underwriter. classification assigned will be for the most hazardous or higher premium The occupation class assigned will be occupation. based upon the actual duties, not based on the job title. The list is a guide only and the actual underwriting classification assigned to a policy may be more or less favorable, subject to the home office underwriter’s evaluation. For some occupation classifications the occupation list will show that two or more years’ income documentation may be required. FOR PRODUCER USE ONLY – NOT FOR USE WITH CONSUMERS This manual is not a contract. It is intended as a general reference tool only and does not reflect exact contract language. Provisions and availability of certain policy benefits and riders may vary by state. All benefits and riders are subject to underwriting considerations and evaluation and reinsurance availability. 2 Standard Insurance Company Individual Disability Insurance Manual 12288.22 Revised September 5, 2012 Special Occupations The Special Occupations section State Disability Insurance details additional requirements and the For applicants covered only by state occupation classification that may apply disability insurance (SDI) with no other to certain occupations. legislated benefits, please use the Working in Home/Residence following guidelines: (Self-employed): For some . California SSI, if any, must have a occupations, the occupation class list 365-day waiting period. shows specific limitations or disqualifies . Hawaii and Rhode Island SSI, if any, those from being eligible for disability must have a 180-day waiting period. insurance if they work in their home or residence. Because a stable and predictable work environment and earnings are essential to underwriting the disability risk, a proposed insured with an office in his or her home/residence will be given individual consideration, subject to the following information and requirements: Minimum Requirements: . Frequent contact with clients, customers or patients is necessary. Success of the business depends upon that contact. Profit and loss statements, alone, will not satisfy the income documentation requirements. If the proposed insured meets these minimum requirements, refer to the table in the following section. Contact your home office underwriter if you have questions. Regardless of the above guidelines, the underwriter’s individual consideration given to such cases may result in either no offer, a reduced benefit amount, a reduced benefit period and/or elimination of some riders or other benefits. FOR PRODUCER USE ONLY – NOT FOR USE WITH CONSUMERS This manual is not a contract. It is intended as a general reference tool only and does not reflect exact contract language. Provisions and availability of certain policy benefits and riders may vary by state. All benefits and riders are subject to underwriting considerations and evaluation and reinsurance availability. 3 Standard Insurance Company Individual Disability Insurance Manual 12288.22 Revised September 5, 2012 Special Occupations Selected Students and New The listed amounts are subject to Professionals underwriting approval and will be reduced by any other in force disability Special limits are available for certain income coverage. professionals in their first two years of practice in their profession or for listed If the applicant has accepted a job student professionals exhibiting offer or employment contract which continuous educational progress. goes into effect within the next three These limits are not available to those months, the amount of disability with interrupted periods of schooling or income offered will be based upon the training, or if more than six months has earned income and any group or other elapsed between leaving disability income coverage that the school/training and starting practice. applicant will become eligible for as a Amounts greater than the listed limit result of that employment. must be justified by earned income. To assist in processing applications, These limits are available on an “all indicate applicable details on the base” coverage approach. As an application, such as the program of alternative for The Protector+SM, the study, school year, year of residency, Supplemental Social Insurance Benefit medical specialty training for, and the rider (SSI) may also be offered. For length of time practicing in their example, a veterinarian starting in profession. private practice can purchase either We do not offer disability insurance to $1,250 base benefit per month plus any other students, studying for a $750 SSI, providing a total benefit of profession or otherwise. $2,000 per month, or $2,000 base benefit per month (“all base” coverage) and no SSI. FOR PRODUCER USE ONLY – NOT FOR USE WITH CONSUMERS This manual is not a contract. It is intended as a general reference tool only and does not reflect exact contract language. Provisions and availability of certain policy benefits and riders may vary by state. All benefits and riders are subject to underwriting considerations and evaluation and reinsurance availability. 4 5 Temporary Changes Based on observed stabilization in the financial • Income averaging is not appropriate for significant services industry, The Standard has reviewed certain fluctuations—more than 20 percent per year—in occupations and adjusted its underwriting criteria, earned income, or if the year-to-date documentation returning to previously established normal maximum I&P produces the lowest income limits. Other occupations will remain eligible for reduced Guarantee Issue I&P limits, as described in the chart below. Individual Disability Insurance For best consideration, include detailed cover letters In concert with the IDI changes referred to above, explaining