Principal Discontinues Table Shave Program Effective April 1stBenkis Barrueta
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, Principal was 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, the use of table improvement programs has diminished due to:
- Carriers introducing crediting programs like Principal 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
Principal regularly review their 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, Principal 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 their office by April 15, 2021.