LH Now Requiring Notary to Cancel??

[bboman23]

Do you still fill out a replacement form? After all you are still replacing the current policy right?

Yes I fill out the replacement form.

 

[Newby]

So if you're a notary do you have them hand write the note and the notarize it?i would think that wouldn't work and many of these older people don't have computers to type it right then. Also do you leave them a copy and of its hand written how do you do that? Also on stopping the bank draft at the company. If it's 6-9 pm and the home office is closed what then?

You young kids that have never seen the world without computers kill me.

In MY day we wrote the cancelation on a shovel with a lump of coal. But now-a-days they have these new fangled ink pens and sheet paper. You kids have it easy.

1. Step one- get them approved for the new policy at a lower premium or some other advantage to the consumer. ALWAYS fill out the replacement form if they have canceled or lapsed ANY life insurance policy in the past 60-days or plan to cancel, lapse or reduce any police in the future regardless of whether you or your policy has anything to do with their decision on the other policy. The replacement form is for YOUR protection. Failure to get one is what can hang you. If funds from the old policy are rolling into the new one, fill out the new company's version of the IRS-1035 Exchange form
2. step two- Call the old insurance company and stop the bank draft. Put them on quarterly billing. This way they are always covered on the old policy until they have the new policy in their hands.
3. Step three- hand write the cancelation letter. Include the policy number and today's date. Have the client sign. If there is a refund of cash values mail it certified. Don't mail it prior to the new policy getting issued.
4. Step four- Work the referral line backwards. If the replaced policy was a recent sale and easy to beat the rates, see if they were referred by a friend that was also sold a policy. I've gotten three layers deep working these referral lines backwards. That's some free Monkey Dust for you right there Baby!

 

[bboman23]

You young kids that have never seen the world without computers kill me.

In MY day we wrote the cancelation on a shovel with a lump of coal. But now-a-days they have these new fangled ink pens and sheet paper. You kids have it easy.

1. Step one- get them approved for the new policy at a lower premium or some other advantage to the consumer. ALWAYS fill out the replacement form if they have canceled or lapsed ANY life insurance policy in the past 60-days or plan to cancel, lapse or reduce any police in the future regardless of whether you or your policy has anything to do with their decision on the other policy. The replacement form is for YOUR protection. Failure to get one is what can hang you. If funds from the old policy are rolling into the new one, fill out the new company's version of the IRS-1035 Exchange form
2. step two- Call the old insurance company and stop the bank draft. Put them on quarterly billing. This way they are always covered on the old policy until they have the new policy in their hands.
3. Step three- hand write the cancelation letter. Include the policy number and today's date. Have the client sign. If there is a refund of cash values mail it certified. Don't mail it prior to the new policy getting issued.
4. Step four- Work the referral line backwards. If the replaced policy was a recent sale and easy to beat the rates, see if they were referred by a friend that was also sold a policy. I've gotten three layers deep working these referral lines backwards. That's some free Monkey Dust for you right there Baby!

Very good post. Very helpful

 

[HoosierDaddy]

Newby is making it rain with Monkey Dust!

I'm like JD, I can't believe you guys have never called the company and stopped the bank draft? It is surprising what may be considered new info on here after such deep debate happens over other very insignificant things.

 

[jdeasy]

So if you're a notary do you have them hand write the note and the notarize it?i would think that wouldn't work and many of these older people don't have computers to type it right then. Also do you leave them a copy and of its hand written how do you do that? Also on stopping the bank draft at the company. If it's 6-9 pm and the home office is closed what then?

I didn't realize this was so complicated.

The only thing you ever notarize is something that requires a notary.

I replaced an LH today. We called LH and told them to take the policy off of draft. That's all that needs to be done. Since she does have cash value and the value is over $50 they will require that the surrender form be notarized. We did ask them to send the cash surrender form.

Monumental requires that the cash surrender form be witnessed.

LH, in their wisdom, thinks if they make it harder for people to cancel policies that they will keep them. When in reality it just makes people more willing to get rid of them.

What if the company that we are wanting to stop the draft is closed? A rarity for me since I don't work the night shift but, if faced with that problem, I hand write out a note to the company to stop the draft and send surrender forms. I will then fax that note to the company the next day.

Never had a problem with that.

 

[John Galt]

Newby is making it rain with Monkey Dust!

I'm like JD, I can't believe you guys have never called the company and stopped the bank draft? It is surprising what may be considered new info on here after such deep debate happens over other very insignificant things.

Ive done it, lol. But most of the time I send a certified letter back to the current carrier which cancels the policy and returns cash value. I have the return receipt returned to the insureds address so they and I both have proof it was mailed and the carrier received it. I only mail the certified signed cancellation letter once the new policy is issued, never ever before, boom, more monkey dust.

 

[jacobtn]

in the past week I have replaced two different companies that required a notary to do a surrender. Reassure America policies don't require it, but since they don't have many of the original applications on file to compare signatures they say you might as well get a notary seal or they will reject if they have no signature to compare to. They purchased several blocks of insurance company policies and apparently don't have all the signatures on file for them.

Easiest way to handle it is to become a notary so you can assist them in that too. Cheap and worth having IMO.

 

[Newby]

in the past week I have replaced two different companies that required a notary to do a surrender. Reassure America policies don't require it, but since they don't have many of the original applications on file to compare signatures they say you might as well get a notary seal or they will reject if they have no signature to compare to. They purchased several blocks of insurance company policies and apparently don't have all the signatures on file for them.

Easiest way to handle it is to become a notary so you can assist them in that too. Cheap and worth having IMO.

I agree. Excellent info.

 

[rousemark]

You young kids that have never seen the world without computers kill me.

In MY day we wrote the cancelation on a shovel with a lump of coal. But now-a-days they have these new fangled ink pens and sheet paper. You kids have it easy.

1. Step one- get them approved for the new policy at a lower premium or some other advantage to the consumer. ALWAYS fill out the replacement form if they have canceled or lapsed ANY life insurance policy in the past 60-days or plan to cancel, lapse or reduce any police in the future regardless of whether you or your policy has anything to do with their decision on the other policy. The replacement form is for YOUR protection. Failure to get one is what can hang you. If funds from the old policy are rolling into the new one, fill out the new company's version of the IRS-1035 Exchange form
2. step two- Call the old insurance company and stop the bank draft. Put them on quarterly billing. This way they are always covered on the old policy until they have the new policy in their hands.
3. Step three- hand write the cancelation letter. Include the policy number and today's date. Have the client sign. If there is a refund of cash values mail it certified. Don't mail it prior to the new policy getting issued.
4. Step four- Work the referral line backwards. If the replaced policy was a recent sale and easy to beat the rates, see if they were referred by a friend that was also sold a policy. I've gotten three layers deep working these referral lines backwards. That's some free Monkey Dust for you right there Baby!

If you have placed the policy on quarterly premium mode instead of bank draft, there is no need to write a letter to cancel it..After the grqace period, it will cancel for non payment.

 

[term1]

A few questions. Is the notorized surrender form on a blank piece of paper? Can the company insist its on there form?Does the agent write out the surrender form himself then just get the client to sign it?Newby your step one was get the policy issued. Does that mean on all replacement clients do a pos to get instant approval?Do these policy's really have any cash value in the first few yrs to worry about it?