cia annual meeting 1101- non-traditional distribution mortgage brokers

CIA Annual MeetingCIA Annual Meeting

1101- Non-Traditional DistributionMortgage Brokers

1101- Non-Traditional DistributionMortgage Brokers

CIA Annual MeetingCIA Annual MeetingSession 1101 – Mortgage Brokers Session 1101 – Mortgage Brokers

LOOKING BACK…focused on the futureLOOKING BACK…focused on the future

• Mortgage Brokers• Market Overview

• 21% in 2003, to 26% in 2004• 30% of new home buyers use mortgage brokers • Over 7500 Mortgage Brokers



• Why is this a growing market?• Service• Price• Time• Choice



• Sales Process - Mortgage• Client meeting

• Obtain mortgage or re-financing details• Personal financial information obtained

• Information entered on the Mortgage Origination System (MOS)

• Get various lender quotes• Client selects lender • Commitment package produced



• Insurance Process – Insurance• Insurance discussed at any time in the above

process • Insurance Quote or application is provided in

one of the following ways:• As a link to insurance providers website,• Referral to financial planner, • Paper application, or• Generated application in MOS

• Application is than faxed or mailed in



• Product – Life• Death Benefit

• Outstanding balance at time of death• Generally maximum of $500,000

• Coverage• Single, Joint

• Issue Ages• Generally 16-65.



• Product – Life (continued)• Termination

• Discharge of mortgage, attained age 75, end of Amortization Period, etc

• Premium• Per $1,000 of initial mortgage amount• Issue age(s) of applicant(s)• Joint discount• Level • Aggregate or Smoker Distinct



• Product – Life (continued)• Beneficiary

• Lender

• Portable• Group Policy

• Policyholder is broker office, franchise owner, or Super-Broker



• Product DI• Benefit

• equals mortgage payment at time of application or actual mortgage payment

• Benefit Period• Generally 24 months

• Waiting Period• 30 or 60 days



• Product DI (continued)• Payable

• Totally disabled• Unable to perform duties of any occupation

• Maximum Benefit• $3000 to $5000 per month

• Pre-existing Condition• 6 or 12 months



• Other Products• Critical Illness• Line of Credit• Loss of Employment



• New Business Process• PAC• Missing information

• Underwriting• Less than $250,000

• 3 medical questions• Non-medical

• Over $250,000 similar to Individual Life



• Policyholder Service• Change in banking information• Change in address• Decrease or Increase in coverage



• Claims Issues• Non-disclosure• Getting information from lender• Potential for anti-selection



• Regulatory Issues• BC/Sask

• Advice• Consumer Brochure

• Quebec• Distribution guide

• Alberta• Licensing



• Keys to Success• Technology• Product

• Simple and inexpensive

• Support

cia annual meeting 1101- non-traditional distribution mortgage brokers

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