Lloyd’s DI
Lloyds, London is the world’s leading specialist insurance market. As an approved Lloyd’s coverholder since 2003, Hunter McCorquodale has developed a suite of proprietary DI products supported by the leading Lloyd’s syndicates in this class.
Our Lloyd’s DI portfolio consists of personal (income replacement) and business (buy/sell, key person, overhead expense) products designed to help advisors provide their clients with solutions for a variety of disability insurance needs that can’t be satisfied through traditional DI insurers, including:
- High Limit Needs – we can generally offer whatever amount of coverage is needed, provided it is financially justified
- Older Ages Applicants – we can underwrite coverage at ages much higher than the limits of regular insurers
- Customized coverage and disability definitions to meet specific client needs or contractual requirements
- Foreign travel, citizenship or residence Issues
- Medical history and/or lifestyle insurability issues
Under our Lloyd’s binding authority we are able to underwrite and issue coverage up to very high coverage limits.
| FEATURE | DETAILS |
|---|---|
| Structure: | Monthly benefits, lump sum benefits, or a combination of the two as appropriate to the specific situation. |
| Amounts: | Unlimited, subject to appropriate justification of sum insured. As examples, we have underwritten income replacement policies of as much as $156,000/month, key person disability of $500,000/month and $50 million lump sum, business overhead of $125,000 month, and buy/sell of $16.5 million. |
| Issue Ages: | Age 20 up to 70 years old |
| Currencies: | Canadian or US Dollars |
| Policy Terms: | 1 day up to 3 years (accident-only for terms of 3 months or less). Renewal subject to re-underwriting. |
| Elimination Periods: | 30 days to 5 years |
| Monthly Benefit Periods: | Up to 60 months |
| Definition of Disability: | Own Occupation, Any Reasonable Occupation, Permanent Total Disability or a combination.
For example, a common income replacement structure provides monthly benefits for 60 months with an Own Occupation definition, followed by a lump sum for Permanent Total Disability calculated as the present value of the Monthly Benefit from that point to age 65. |
| Premiums: | Premiums are determined based on the specific risk profile of each case, subject to an annual minimum premium of $1,500. |
| Underwriting: | Due to shorter policy terms, we are usually able to underwrite much more leniently than traditional insurers. We do not have fixed age/amount requirements, and can frequently approve large cases based only on a well completed application.
If evidence is required, we will obtain a medshare from another insurer where possible and when that is not possible we generally only require an APS. Financial documentation is usually comparable to that required by traditional insurers. However, there are no fixed requirements and we will only ask for what is appropriate for each specific situation. |
Sample Cases:
The 63 year old US-resident CEO of a Canadian based transportation company needed Income Replacement DI
With a salary of USD $1.3M and annual bonuses of up to 300% of base, the company was contractually required to provide disability benefits to him. However, he was not eligible for group LTD due to residency, or for individual DI due to age. We issued a 3 year term Lloyd’s disability income replacement policy with a monthly benefit of $75,000 and a 24 month benefit period.
A 59 year old executive is the only Canadian-based employee of a US firm
They could not put him on their US benefit plan, but wanted to ensure that he received similar benefits as his US colleagues. He could qualify for regular income replacement coverage under a Canadian domestic insurer plan. However, through Lloyd’s we issued competitive coverage for 20% less premium and with a much simpler underwriting process.
Private equity firm needed $15 Million Key Person Disability on founder/former owner
A private equity firm invested $15 million to acquire a controlling interest in an environmental services business and wanted to insure the founder/previous owner. They were unable to find a traditional insurer who would offer any significant amount of key person disability coverage. We provided the full $15 million required.
Executives with “Change of Control” clauses required LTD for 3 years following contract termination
A toy company needed to extend LTD coverage for 3 years on several senior executives due to their employment contract “Change of Control” clauses being invoked. The LTD insurer was not willing to extend coverage beyond the statutory notice period. We issued the required DI coverage as required in the employment contract.
47 year old Ophthalmologist requires $120,000 of Business Overhead Expense coverage
With annual earnings of $5M and monthly expenses of $167,000 we provide were able to provide $120,000 of BOE coverage with a 60 day elimination period and 24 months of benefit with a 3 year policy term.
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– Please request a quote through our online submission form. Submit the quote along with the completed application. We will not consider an application without this.
- Complete an Application Form – The required application forms will be provided to you with the quote. Please print, complete and have your client sign it before submitting.
- Please provide any financial information specified in the quotation. In some cases, this might be determined after receipt of the application.
- Complete any other forms or questionnaires indicated as required in the quote illustration.
- Scan and email the Application, Quote (and/or any other required questionnaires) to info@hunmcc.com. This will ensure immediate processing. Originals are not required. Please keep them for your records. If you cannot scan the documents, please fax or send a copy via Canada Post or courier to:
Hunter McCorquodale
145 Wellington Street W
Suite 1200
Toronto, ON
M5J 1H8
Fax: (416) 322-6846 - Include a copy of your current license and E&O insurance certificate with the application if you are not contracted with us. We will initiate contracting upon receipt of your first application.
IMPORTANT INFORMATION:
- If a previous application has been declined within the last six (6) months, Hunter McCorquodale will obtain any available evidence from the declining insurer in order to expedite processing.
- If there is no previous decline, DO NOT order any medical evidence. All requirements will be obtained by Hunter McCorquodale. We will advise you what requirements are being arranged after the initial underwriting review.
- There is no temporary insurance.
- If the application is approved, the administrator will advise you how to pay premium.