It’s MOOCOW – MOOers Case Of The Week – time!

Jim and Nancy are husband and wife, and business partners. They applied for an SBA loan. The loan was approved, but at the last minute, they realized they needed life insurance as collateral.

 

THAT’S when they started the insurance application process.  PLEASE remind your SBA loan clients to start the life insurance process at the beginning, not the end. Or you might end up with the following horror story:

 

March 9 : Introductory email from the agent. We find out Jim is 62 and overweight, Nancy is 67 and overweight. We respond with guidance.

March 16 : We’re shut down. You know, COVID.

 

April 20 : Agent emails. “Clients want to proceed with coverage”.

April 28 : From agent: “Just about ready to drop off the applications”.

April 30 : Clients are informed that the earliest date for exams (they’re too old for Automated Underwriting) is at the end of June. That won’t work for the SBA loan.

 

May 6 : APPS (heroes) fits them in for exams.

May 12 : Nancy is declined, because she’s overweight, diabetic, 67, and there’s a global pandemic going on. We’re having a heck of a time finding coverage for those over 65 with underlying health issues. We fight like crazy, but can’t get them to budge.

May 19 : We discover that the lender has a heart! They want proof that Nancy couldn’t get coverage, and they’re willing to collateralize the loan with just a policy on Jim.

May 20 : We get Jim’s medical records. They are exactly ONE THOUSAND pages long. Jeff pours himself another cup of coffee and starts his review.

 

June 4 : Carrier’s website basically blows up for a while.

June 4 : Case is postponed due to hepatitis. We fight again.

June 8 : Application approved at Standard Non Tobacco.

 

And THEN we START the Collateral Assignment process. So please: