Automatic Standard Approval Program (ASAP) to be Discontinued Effective 04/01/21

Automatic Standard Approval Program (ASAP), also known as “Table 3 to Standard.”

When the program was introduced about 20 years ago, it was common for carriers to place a low substandard rating on a case and shop it to reinsurers to take the risk to standard. With ASAP, we were able to eliminate the step in the process to shop the case to reinsurers, while still getting to the same underwriting outcomes. But over time, use of table improvement programs has diminished due to:

• Carriers introducing crediting programs like our Healthy Lifestyle Credits (HLC)
• Many chronic conditions being assessed more favorably than in the past due to improved treatments and outcomes
• At Principal, as we issue more term business, usage of ASAP decreases since the program isn’t available for term policies

We regularly review our underwriting offerings to determine their relevance in the market, as well as their financial impact to the company and long-term sustainability. Following a thorough evaluation, we’ve decided to discontinue ASAP, effective April 1, 2021. To be eligible for ASAP consideration, formal applications (both new business and adjustment) must be dated prior to April 1, 2021 and received in our home office by April 15, 2021.

We believe this change reflects the ongoing evolution of medical underwriting and that we remain well positioned to provide competitive and consistent underwriting offers. Our client-focused approach, and recent enhancements to Principal Accelerated Underwriting^SM through increased use of digital health data and digital application capabilities, offer shorter underwriting times and improved experiences for you and your clients.