Part 3: Discuss your issue *** please answer b***

From the perspective of your department and management level, discuss the impact that your issue could have on the department and the company as a whole.

a. Suggest ONE reason why the deduction could have been too small

b. Critique TWO suggestions made by group mates from other departments.

Erica is the operational manager for HR (human resources) and Stevencia is the operational manager for accounts.

Erica - The deduction could have been too small due to inaccurate policy coverage, for example, the client may have been paying for coverage for himself and increased his policy to include his family, and the update was not made. This issue can have a significant disservice to the company's reputation and the policyholder for the insured coverage.

Stevencia - The client deduction can be too small due to the policy premium increasing. Once the client attains a certain age, the policy premium can increase to sustain the mortality charges on the policy (the risk of dying). In addition, with medical insurance, individuals' health generally declines as their age increases. Therefore, medical costs will increase correspondingly. The insurance addresses this by raising client premiums as they get older either annually or in five year increments. The client may not be aware of the increase in their premium, allowing their deduction to continuously be sent to the insurance company with the same premium prior to the increase. The insurance company has to stipulate the premium changes in the policy contract which is given to the client once the policy has been approved. Furthermore, the insurance company can send out letters, emails or contact clients before the clients attain an age in which the premium will increase to remind the client to adjust their deductions.