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Presentation for introducing lenders to quick close

Presentation for introducing lenders to quick close

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  • Note to Presenter : This presentation is oriented toward several attendees or more from the same lender or attendees representing several different lenders. You may have to tweak the script in places to adapt it to the size of your audience. This is especially true if you are doing a table-top presentation with just one or two people. Welcome to this informational session on QuickClose. I’m (your name) from (your business’ name) . Before starting, I want to thank _________ for giving me this opportunity to speak with you today. Please feel free to raise questions as we move through our slides. I’ll also be pleased to answer questions after the end of the program today. Before moving forward, let me give you an idea of the topics we’ll discuss – First, I ‘ll start with a little about QC Then, we’ll talk about benefits Requirements Product options The right to cure The QC process How we achieve speed Training About MMFG Getting started with QC
  • QuickClose is designed to benefit lenders & borrowers when life insurance is required as collateral for a business loan. Important facts about QC are: It’s an expedited underwriting program. It is not simplified underwriting nor is it guaranteed underwriting. Provides a 7 - 10 business day policy turn around, assuming a favorable underwriting decision. The collateral assignment is included. Solid track record - last 3+ years over 1500 policies & $3.9 million in annual premium 1
  • QuickClose provides several benefits to you: You can issue loans faster and earn interest sooner. Cut weeks off your loan process Enhance your standing with business clients. They will appreciate the easy, quick process for applying for required life insurance. No additional costs. No trailing paperwork as the collateral assignment is included with the policy Receive duplicate premium bills & reminders. Speed and convenience are competitive advantages that you can promote to local businesses.
  • Your clients will enjoy several advantages too. Quality is not sacrificed for speed. No extra cost to your clients. They’ll have access to MassMutual’s and its subsidiary companies’ high quality life insurance products Able to purchase life insurance tailored to their needs. I will be your and your client’s go-to person, working to help prevent problems and resolve any that may occur quickly.
  • QuickClose has very simple requirements: Loan issued by a commercial lender or SBA qualified non-bank lender. Let me emphasize that QuickClose can be used for commercial loans not backed by the SBA. Insurance required as collateral for the loan. Policy collaterally assigned to the lender. QuickClose is available for policies up to (but not including) $10 million in face amount and under $100,000 in premium.
  • With QuickClose, the borrower has access to all categories of MassMutual life insurance products. So, with my help, the borrower can purchase a policy suited to his or her needs. He or she is not restricted to one or a few life insurance products.
  • To make sure we’re being clear about what QC is, let’s take a look at what it is not. Specifically, it’s not: Simplified underwriting. A guaranteed issue product. An expense to the lender or borrower – there are no extra costs associated with QC. Under simplified underwriting, if the borrower answers a few to several underwriting questions satisfactorily, the insurance will be issued quickly. However, the borrower is likely to be restricted to one or a few product choices. Moreover, the premium for the insurance is likely to reflect the absence of full underwriting. Under “ guaranteed issue ” , little or no underwriting is involved and the policy is immediately available. The drawback is that the borrower may be restricted to one product and one underwriting class. This may be attractive to people who are not healthy enough to qualify for fully underwritten insurance, but less attractive to people who can qualify for a better underwriting class. If the borrower does not have serious health issues, he/she may pay far more than would be the case for life insurance that is fully underwritten. As already noted, QC involves an expedited underwriting process; that is, full underwriting is done in a shortened time frame. Thus, clients have access to all of MassMutual’s life insurance products and, each client pays a premium that reflects his or her age and health.
  • As you know, the SBA’s Standard Operating Procedures require that under the collateral assignment, the lender has the right to step in to pay premiums. The SOPs further require that the insurer acknowledge its acceptance of the collateral assignment, including provision of advance notification should the insured fail to pay a due premium. MassMutual’s collateral assignment [based on the American Bankers Association (ABA) and Bank Management Commission (BMC) approved form] meets these SBA’s requirements. Concerning the advance notification requirement, MassMutual provides duplicate bills and premium reminders under its normal operating procedures. (ABA = American Bankers Association) (BMC = Bank Management Commission)
  • The process is pretty straight forward: Identify QC as an option -- tell your client that QC is a streamlined insurance program. Inform your client that insurance products are not FDIC insured, etc. Contact me and I will take it from there. My job is to make your job easier and to make the process smooth for your client so he or she can continue focusing on their business needs . Policy issued in 7-10 business days assuming a favorable underwriting decision. Note to presenter: If you wish, you can provide an overview of your process, using the following outline: Once contacted, our representative will schedule an appointment with the client within 24 to 48 hours. The client will be asked to provide initial information during the call. During the first appointment, our representative will assess the client’s immediate needs and show insurance alternatives. He or she will take the insurance application too. When needed, a paramedic exam will be arranged for the same appointment. Our representative then turns the application and all medical requirements into a new business processor who enters certain data on-line to our Home Office. The application is then over-nighted to our Underwriting Division. Upon receipt, a special tag is put on the application and it is sped through the underwriting process. Assuming a favorable underwriting decision, the policy is issued, including the collateral assignment and is mailed to our representative for delivery. As timing dictates, the recorded collateral assignment and/or policy can be faxed to the lender to meet a loan closing date.
  • At times, lenders who have experienced slower policy issue, question our ability to fully underwrite an insurance application and issue a policy in 7 to 10 business days. After all, their experience is that a full underwriting process requires 6 to 8 weeks or more. Please give us the chance to prove ourselves to you. In the meantime, we ’ ll do a quick review of our process. As noted previously, I am your and your client ’ s point person. I work with the people in our Agency and in our New Business Division to ensure that we meet our timing commitments to you and your customers. (Use if appropriate) Also, we have a “ Point Person ” in our Agency who is a QC expert and who coordinates relations with local lenders. This point person is a great resource and helps to avoid repeat calls on you from different representatives. One of the keys to speed is our excellent relationships with paramedic firms. You can call me on a Monday and I will take the application and have the paramed done on Tuesday. The application will be in the underwriter’s hands by Wednesday or Thursday of the same week. So, you can begin to see how QC cases are expedited. Now, some of you may wonder about the attending physician’s statement. When required, we have several ways of obtaining the APS in 24 –72 hours. Sometimes, the APS gums up the works and when it does, I will let you and our customer know the situation quickly. I will also do my best to expedite receipt of the APS. To achieve speed in underwriting, each QC file has a special tag and is literally walked through the underwriting process.
  • Built on more than a century and a half of financial strength and customer service, we are a premier provider of life insurance, disability income insurance, long-term care insurance, annuities and retirement planning products, income management, and other products and services for individuals, business owners, and corporate and institutional markets. MassMutual Financial Group is a family of companies owned by MassMutual including: Oppenheimer Funds, Inc. Babson Capital Management LLC Baring Asset Management Limited Cornerstone Real Estate Advisors LLC MassMutual International LLC MML Investor Services The MassMutual Trust Company, FSB
  • If you’re not already using QC, please give us a try. It’s easy to do this – just give us a call or send us an email. Let us earn your business by meeting our promise of hassle free, speedy service. Thanks and does anyone have questions?
  • Transcript

    • 1. QuickClose Designed by Massachusetts Mutual Life Insurance Company (MassMutual) to Benefit Lenders & Their Business Clients CRN201102-116304 DMD4402 SM
    • 2. QuickClose
      • Designed to benefit lenders & borrowers when life insurance is required as collateral for a business loan
        • Expedited underwriting
        • 7-10 business day policy turn around
        • Includes collateral assignment
        • Solid track record - last 3+ years over 1500 policies & $3.9 million in annual premium 1
        • 1 Figures tabulated from September 2005 through November 2008.
    • 3. Lender Benefits
      • Issue loans faster, earn interest sooner.
      • Cut weeks off your loan process.
      • Enhance your standing with business clients.
      • No additional costs.
      • No trailing paperwork.
      • Receive duplicate premium bills & reminders.
      • A benefit you can promote to local businesses.
    • 4. Advantages to Your Clients
      • Quality is not sacrificed for speed.
      • No extra cost.
      • Access to MassMutual’s* high quality life insurance products.
      • Able to purchase life insurance tailored to their needs.
      • MassMutual’s representative is a professional go-to person.
      *and subsidiary companies
    • 5. QuickClose Requirements
      • Loan issued by a commercial lender or Small Business Administration (SBA) qualified non-bank lender.
      • Life insurance required as collateral for the loan.
      • Policy collaterally assigned to the lender.
      • Up to (but not including) $10 million in face amount and under $100,000 in premium.
    • 6. Product Options
      • Term Life Insurance
      • Universal Life Insurance
      • Whole Life Insurance
      • Variable Life Insurance*
      *Securities offered through registered representatives of MML Investor Services, Inc., 1295 State Street, Springfield, MA 01111. Both are wholly owned subsidiaries of MassMutual
    • 7. QuickClose is:
      • NOT simplified underwriting
      • NOT a guaranteed issue product
      • NOT an expense to the lender or borrower
    • 8. “ Right to Cure”
      • MassMutual uses an ABA & BMC approved collateral assignment form- lender able to step in to pay premiums.
      • MassMutual provides duplicate premium bills & reminder notices.
      • Acknowledged on collateral assignment form
    • 9. The Process
      • Identify QC as an option- tell customer that QC is an expedited insurance program.
      • Inform your client that insurance products are not FDIC insured, etc.
      • Contact the MassMutual rep. working with your bank
      • Our representative takes it from there.
      • Policy issued in 7-10 business days, assuming a favorable underwriting decision.
    • 10. Achieving Speed
      • I’m your point person
      • Relationships with Parameds
      • Attending physician’s statement
      • Special handling in underwriting
    • 11. About MassMutual
      • Financial Strength Ratings 1
      • MassMutual builds confidence among policyholders with outstanding financial performance.
      • Financial strength ratings are a key measure of a company’s ability to meet its.
      • We're proud that our ratings are among the highest of any company in any industry.
      • - A.M. Best Company, A++ (Superior) - Fitch Ratings, AAA (Exceptionally Strong) - Moody's Investors Service Inc., Aa1 (Excellent) - Standard & Poor's Corp., AAA (Extremely Strong)
      1 Massachusetts Mutual Life Insurance Company and its subsidiaries, C.M. Life Insurance Company and MML Bay State Life Insurance Company. Ratings as of 3/2/09. Ratings are subject to change.
    • 12. Affiliates
        • MassMutual Financial Group is a family of companies owned by MassMutual including:
      • Oppenheimer Funds, Inc.
      • Babson Capital Management LLC
      • Baring Asset Management Limited
      • Cornerstone Real Estate Advisors LLC
      • MassMutual International LLC
      • MML Investor Services
      • The MassMutual Trust Company, FSB
    • 13. Support for Small Business
      • Long-standing history of strategic alliances and memberships in support of small businesses
        • Member of NAGGL (National Association of Government Guaranteed Leaders).
    • 14. Getting Started with QuickClose
      • Just give us a call or send an email
      • Contact Information:
      • Scott M. Usselman
      • [email_address]
      • 858.558.7000 x 314
    • 15. © 2008 Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. Insurance products issued by Massachusetts Mutual Life Insurance Company (MassMutual), 1295 State Street, Springfield, MA 01111-0001 and CM Life Insurance Company and MML Bay State Life Insurance Company, 100 Bright Meadow Boulevard, Enfield, CT 06082.

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