Dilemma--replacement of Agent Lied-on Policies

[yabadabadoo1026]

So I'm working a Jane lead today and the nice little old lady tells me shes in process of cancelling a Bankers policy 3 mo old cause he agent left and she just likes having an agent ( nice but don't know how much that's worth on a 2500 policy). So I write her a modified since she had breast cancer 15 months ago.

I ask for the Bankers policy to do the replacement---I know many prob would'nt have on a $20/mo policy---and find she had more insurance than she thought she had ( 2500, same as what I quoted $28 for)------to no surprise the Bankers guy answered NO to cancer over last 3 years to give her a level rate 30% less than my legitimate written rate

She didn't stop me but integrity and conscience beckons me to call her and tell her maybe she should keep what she has. We know that lied on app wont pay during contestability period either but shes paying $8 / mo more. Most definitely the agent lied and not her / she was taken back when I showed her the NO answer. Shes really in a better place keeping the better/lower price policy albeit by lies, right?

Any input---------am I doing the right thing deciding to not want to take this replacement??????

Bankers agents are captive, right?????----not a carrier independants have. Is it the general rule of thumb there to NO all the way down routinely without regard to the facts or is it just by some and many rogue agents???? If its the former and its encouraged, why do they even have an application???? and if its not encouraged why do they allow it with such regularity?????? Are they just betting on the insured getting beyond contestibilty to sell policies they might not write truthfully. If this woman died of a reoccurrence of cancer after contestability I assume it would be paid with no regard the cancer questions was obviously intentionally answered untruthfully ( would never be know if the insured or agent answered it wrong). Is a lying agent home free after contestability period is over???

Should I try to avoid the replacement and suggest she just keep the better and lower price plan albeit via the agent lie????

 

[Rearden]

If the policy is three months old, I would show her in the application where the agent lied and let her make her own mind up if she wants to switch.

Just make sure you document everything on the replacement form.

FYI -- you can get her Graded coverage through United Heritage; they only have a 12 month look-back on cancer. Plus you get paid full comp on graded coverage, versus taking a haircut.

Point is you can make the sale a little easier with something a notch above modified.

 

[yabadabadoo1026]

If the policy is three months old, I would show her in the application where the agent lied and let her make her own mind up if she wants to switch.

Just make sure you document everything on the replacement form.

FYI -- you can get her Graded coverage through United Heritage; they only have a 12 month look-back on cancer. Plus you get paid full comp on graded coverage, versus taking a haircut.

Point is you can make the sale a little easier with something a notch above modified.

graded on 15 month ago cancer is good but not sure how much if any better the rate will be------UHL has pretty good ROP rates and with no haircut. I told her she had same coverage at $ 8 less . Its a matter of conscience for me------she didn't like seeing the guy lied but if I were her I'd keep the thru no fault of her own fraudulent policy but being a good church goin women she might opt for the more honorable road as I'm trying to do by maybe discouraging the replacement ( you said document on the replacement form------are you suggesting saying on it the blatantly lied answer????---I never have before put comments on these)

 

[rousemark]

graded on 15 month ago cancer is good but not sure how much if any better the rate will be------UHL has pretty good ROP rates and with no haircut. I told her she had same coverage at $ 8 less . Its a matter of conscience for me------she didn't like seeing the guy lied but if I were her I'd keep the thru no fault of her own fraudulent policy but being a good church goin women she might opt for the more honorable road as I'm trying to do by maybe discouraging the replacement ( you said document on the replacement form------are you suggesting saying on it the blatantly lied answer????---I never have before put comments on these)

There is a difference in that in the case of a contested claim only the premium paid is refunded... There is no "interest" paid.

 

[WinoBlues]

graded on 15 month ago cancer is good but not sure how much if any better the rate will be------UHL has pretty good ROP rates and with no haircut. I told her she had same coverage at $ 8 less . Its a matter of conscience for me------she didn't like seeing the guy lied but if I were her I'd keep the thru no fault of her own fraudulent policy but being a good church goin women she might opt for the more honorable road as I'm trying to do by maybe discouraging the replacement ( you said document on the replacement form------are you suggesting saying on it the blatantly lied answer????---I never have before put comments on these)

Value over price. If the graded plan is more than the ROP X2 yrs that is because it is a better value in my book. Coverage today not two years from now. However, it needs to be of value to her. Present it and let her choose. I rarely quote the cheapest and am rarely replaced.

 

[bboman23]

Hard for me to see how a UHL ROP will be cheaper than UH graded? UHL ROP is very expensive.

 

[VolAgent]

graded on 15 month ago cancer is good but not sure how much if any better the rate will be------UHL has pretty good ROP rates and with no haircut. I told her she had same coverage at $ 8 less . Its a matter of conscience for me------she didn't like seeing the guy lied but if I were her I'd keep the thru no fault of her own fraudulent policy but being a good church goin women she might opt for the more honorable road as I'm trying to do by maybe discouraging the replacement ( you said document on the replacement form------are you suggesting saying on it the blatantly lied answer????---I never have before put comments on these)

Stop putting your pocketbook ahead of hers. You should always be willing to take a small haircut if it really helps the person. You still get paid and they are in a better spot. Cancer 15 months ago also qualifies for graded with Aetna. They have some of the best graded rates out there, and graded is full comp with them.

I can understand trying to avoid getting knee-capped like happens with modified or over age 80 with some companies. But a haircut? Take it, you still got paid and they are better off.

 

[yabadabadoo1026]

Stop putting your pocketbook ahead of hers. You should always be willing to take a small haircut if it really helps the person. You still get paid and they are in a better spot. Cancer 15 months ago also qualifies for graded with Aetna. They have some of the best graded rates out there, and graded is full comp with them.

I can understand trying to avoid getting knee-capped like happens with modified or over age 80 with some companies. But a haircut? Take it, you still got paid and they are better off.

my posts were absolutely misstated or misinterpreted. I absolutely am putting her interest ahead of mine-----even with application in hand I've suggested she consider not replacing the dishonest Bankers app, I'm quite OK to withdraw her app with me. Of course I would always do a graded instead of a ROP given the option even with haircut---any kind of app here is undeserved gravy--- but I don't have a graded with any of my carriers .If I had graded option I wouldn't feel so uncomfortable with whole thing---- she was given a level which IMO she shouldn't replace albeit dishonestly stated. Her agent is no longer there--guess they fired him for submitting an honest app on another---and she wanted an agent but don't think my existence is worth the diff in $$ on my honest app. I'll give this one up and sleep better at nite for it. ( and BTW I'm a Vol myself)

 

[WinoBlues]

Stop putting your pocketbook ahead of hers. You should always be willing to take a small haircut if it really helps the person. You still get paid and they are in a better spot. Cancer 15 months ago also qualifies for graded with Aetna. They have some of the best graded rates out there, and graded is full comp with them.

I can understand trying to avoid getting knee-capped like happens with modified or over age 80 with some companies. But a haircut? Take it, you still got paid and they are better off.

That. /\
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my posts were absolutely misstated or misinterpreted. I absolutely am putting her interest ahead of mine-----even with application in hand I've suggested she consider not replacing the dishonest Bankers app, I'm quite OK to withdraw her app with me. Of course I would always do a graded instead of a ROP given the option even with haircut---any kind of app here is undeserved gravy--- but I don't have a graded with any of my carriers .If I had graded option I wouldn't feel so uncomfortable with whole thing---- she was given a level which IMO she shouldn't replace albeit dishonestly stated. Her agent is no longer there--guess they fired him for submitting an honest app on another---and she wanted an agent but don't think my existence is worth the diff in $$ on my honest app. I'll give this one up and sleep better at nite for it.

Pick up a good graded plan. Then it is a win win win. She gets a better plan, a better agent and you get paid aand a greatful client.

 

[VolAgent]

my posts were absolutely misstated or misinterpreted. I absolutely am putting her interest ahead of mine-----even with application in hand I've suggested she consider not replacing the dishonest Bankers app, I'm quite OK to withdraw her app with me. Of course I would always do a graded instead of a ROP given the option even with haircut---any kind of app here is undeserved gravy--- but I don't have a graded with any of my carriers .If I had graded option I wouldn't feel so uncomfortable with whole thing---- she was given a level which IMO she shouldn't replace albeit dishonestly stated. Her agent is no longer there--guess they fired him for submitting an honest app on another---and she wanted an agent but don't think my existence is worth the diff in $$ on my honest app. I'll give this one up and sleep better at nite for it. ( and BTW I'm a Vol myself)

Then get a carrier that does graded.

I've always liked Aetna, United Heritage is good too.

Gerber would have been a better choice than UHL ROP as well. Yes, the comp isn't as good, but much lower premium for her.