Case Studies
We have provided these case studies, in hopes that these examples will illustrate our value to our clients.
Personal Auto Case Study
Client ID 6239: The following is a common scenario. Our clients are a married couple with two vehicles. Our steps are:
First: Apples to apples comparison – the current policy versus our top seven companies.
Second: We explain the coverages that are available.
Third: We provided our clients with options.
The following is a comparison of the clients’ expiring policy versus his informed choice.
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Workers' Compensation Case Study
Client ID 6256: IIC was contacted by a construction company. The company fabricated and erected metal buildings. For eight years the company had been with the same insurance company. There had been one change of agent of record. We used the workers’ compensation rating rules to conclude the following over charge had occurred.
| Old Classifications & Rate (per $100 payroll) | New Classifications & Rate (per $100 payroll) | ||||||||||||
5200 - Concrete or Cement Work |
$8.01 | $25,055/Person, |
$8.01 | ||||||||||
5040 - Iron or Stee: Erection |
$28.93 | 5057 - Iron or Steel: Erection |
$13.37 | ||||||||||
3365 - Welding or Cutting NOC |
$10.29 | 3365 - Welding or Cutting NOC |
$10.29 | ||||||||||
5538 - Metal Building Construction |
$13.30 | 5538 - Metal Building Construction |
$13.20 | ||||||||||
6219 - Excavation NOC |
$8.91 | 6219 - Excavation NOC |
$8.91 | ||||||||||
8227 - Contractor's Permanent Yard |
$5.27 | 3066 - Sheet Metal Workk Shop |
$7.14 | ||||||||||
| 8742 - Salespersons - Outside | $0.74 | 8742 - Salespersons - Outside | $0.74 | ||||||||||
| 8809 - Executive Officers | $0.62 | 8809 - Executive Officers | $0.62 | ||||||||||
| 8810 - Clerical Office Employees | $0.46 | 8810 - Clerical Office Employees | $0.46 | ||||||||||
| ESTIMATED ANNUAL PREMIUM | $226,789.00 | ESTIMATED ANNUAL PREMIUM | $129,184.00 | ||||||||||
With the correct classifications the difference in premium is $97,605.
Consider: The insured has been classified incorrectly for 8 years. What was the total over charge?
Health Insurance Case Study
A church asked us for assistance regarding their employee benefits. Their current insurance carrier was very expensive and financially unstable. This was not an easy small group. There were six health conditions that insurance companies normally would give a maximum uprate and the group had only five employees.
The church elders requested quotes with the same coverages as the current plan. We conditionally agreed. Our condition was the elders must allow our presentation of an alternative major medical product.
The alternative major medical had broader coverage. There was a significant difference in cost.
| Description | Curent Plan | IIC's Proposal | ||
Description |
Current Plan |
IIC's Proposal | ||
Maximum Lifetime Benefit |
$5,000,000 |
$5,000,000 | ||
Out of Pocket Maximum (In-Network) |
$1,500 ind./ $4,500 family |
$578 ind./ $1,140 family | ||
Out of Pocket Maximum (Out-Network) |
$6,000 ind./ $18,000 family |
$2,178 ind./ $2,740 family | ||
Monthly Premium |
$7,241.09 |
$5,444.68 | ||
ANNUAL SAVINGS |
$21,566.92 | |||
Fortunately one of the elders was a retired insurance agent. He understood the advantages of the new product. The elders voted to accept the new product design. The best part of this case was the 5% decrease in rate they received on their second renewal. When was the last time your health insurance premium was lowered at renewal?
Life Insurance Case Study
Scenario: A married couple was considering purchasing universal life policies. They were both 40 years old. They had two children, a 16-year old son and a 15-year old daughter. The couple was afraid if something were to happen to either one of them, the surviving family members would have financial hardship. They had received universal life proposals from another agency. For a $100,000 death benefit, the total premium was $205 monthly.
Our advice: The primary concern of the parents was to pay off their debt and to make sure the kids would be able to go to college. Their only interest was death benefit. As a result, our recommendations were:
| Individual | Option #1 |
Option #2 |
||||||||||
Male, age 40 |
$500,000 | 20-Year Level Term |
$40.94/mo. | $1,000,000 | 20-Year Level Term | $73.43/mo. | ||||||
Female, age 40 |
$500,000 | 20-Year Level Term |
$33.82/mo. | $1,000,000 | 20-Year Level Term | $58.30/mo. | ||||||
Male, age 16 |
$100,000 | Annual Renewable Term |
$10.50/mo. | $100,000 | Annual Renewable Term | $10.50/mo. | ||||||
Female, age 15 |
$100,000 | Annual Renewable Term |
$9.00/mo. | $100,000 | Annual Renewable Term | $9.00/mo. | ||||||
TOTAL PREMIUM |
$94.26/mo. |
$151.23/mo. |
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Every type of life insurance serves a purpose. If your primary interest is death benefit, consider level term products.
Our recommendation included a term policy on each child. The mortality tables indicate a spike in mortality at the ages of 16-18 and another spike at 21-24. The cost of the insurance is very reasonable. Consider insuring your children for at least $100,000 until they are no longer your dependents.