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AFG offers a turnkey servicing and asset management platform for managing policies after they have been purchased.
Key disciplines in policy servicing include: calculating premiums, paying or arranging the payment of premiums,
tracking lives, updating medical information and life expectancy reports, and policy collections.
Premium Calculations.
In calculating premiums, AFG uses its proprietary system to calculate the minimum required
cost of insurance ("COI") that is needed to keep the policy in-force.
The initial premium calculations are made when a policy is underwritten; however,
the Company updates its premium estimates based upon the most recent policy
information available - updated in-force illustrations and policy statements are the primary
sources of such data. Frequently, premium holidays are taken on a policy when there is substantial
cash value in a policy at the time of purchase.
Premium Payments. When servicing policies,
AFG is responsible for making or arranging timely and accurate premium payments.
Premium payments are made either directly by AFG or through a collateral agent or trustee
that is responsible, on behalf of the policy owner, for managing all financial transactions of the policy.
Life Tracking. AFG tracks the lives of the insureds of the underlying insurance policies.
The Company utilizes multiple systems for life tracking: automated electronic tracking,
mailings, and phone calls. For automated electronic tracking, master tracking taps directly into the U.S.
Social Security Administration's death records database monthly to check on the status
of the policy insured. This automated tracking is by far the most reliable system.
In addition, the Company sends mailings to the policy insured(s) and makes phone calls to
the policy insured's designated contact. The frequency of the phone calls and mailings
depends on the insured's life expectancy and the client's requirements,
as well as state regulatory provisions.
Updating Medical Information. The Company, from time to time, contacts the doctors and
medical providers of the insured to obtain updated medical information.
By keeping medical information current and obtaining updated life expectancy reports, AFG enables
the policy owner to assess the value of a policy.
Policy Collection. The Company is responsible for the collection of the policy
death benefits when such proceeds become payable. The collection process is usually straight
forward and typically takes anywhere from two to four weeks, depending on the speed with
which all necessary documentation can be assembled.
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