MedSupp, No EFT, Ugh! Mail/fax/overnight?

[GoPokes]

Usually can't get away with putting a bum bank routing number.

Yeah, I dont think it would work on the e-app bc it syncs up with the bank, but if the account number is wrong, it might work.

A couple months ago, i was writing a moo husband and wife, and he didnt have the money in the account for draft upon approval (ss payment was 4th wed), so i used paper app, left one digit off the account number. Got approved, draft didnt go through as expected, waited a couple days for money to be in account, called moo gave the extra digit, payment went through, everybody wins! Anyhow, i wasnt sure if i could make it work with the eapp, so i did paper.

 

[somarco]

Could be me, but I find it easier to either "sell" them on the idea of the bank draft or offer a carrier that will do a monthly bill. No need to play games. Keeps life simple for me and that's the way I like it.

 

[vic120]

Could be me, but I find it easier to either "sell" them on the idea of the bank draft or offer a carrier that will do a monthly bill. No need to play games. Keeps life simple for me and that's the way I like it.

Moo will add service fee if you pay monthly by mail

 

[GoPokes]

Could be me, but I find it easier to either "sell" them on the idea of the bank draft or offer a carrier that will do a monthly bill. No need to play games. Keeps life simple for me and that's the way I like it.

I agree. I haven't run into this issue very often. Once last year with a rich guy who was just stubborn, but he wanted BX plan F, so we did direct bill. And once more with a different couple last year, they were against it but later admitted that they had a separate account for paying their life insurance this way, so they let me do it as well, I had to really "sell" that one. Other than those 2 times, I cant think of the last time it was an issue.

 

[yorkriver1]

Feel your pain. Had one of those last week, fortunately Aetna's eapp can be printed and manually signed. And they allowed the person to send the first payment in by check.

Wow, thanks! I forgot I did that in December. So, I printed/scanned/encrypted emailed a. Full app b. Signature pages. Will return signed pages to me + copy of check for 1st premium. Fax to Aetna, get policy # IN 3 days, mail check w/policy # on it.
Client is setting up bill pay through bank for premiums. I will mention what others have said about pitfalls, losing coverage/uninsurable-not to mention pre ex on a new policy after a lapse, & suggest a separate premium pay acct.

 

[ccbaxter]

Interesting thread.

I've never done this but I put it out as a theoretically possible solution.

In my state (WA), you're licensed as an insurance producer. This allows you to act as agent and/or broker (although you must post a bond to broker). You also have to establish a separate account for client premium.

For life sales, the client premium account is essentially an unused account established to meet state law since all the companies of which I am aware require that payment be made directly to, and payable to, the company.

In theory, if it is allowed by the company you're writing, you should be able to deposit a first month's premium into your client premium account and let the company draft it out, then switch the billing to quarterly direct.

Might work for medsupp--don't know, never sold medsupp. Just thinking aloud.

 

[somarco]

That practice is (or was) common in the P&C business but have never experienced it in life and health. I don't even like having paper checks.

 

[yorkriver1]

That practice is (or was) common in the P&C business but have never experienced it in life and health. I don't even like having paper checks.

Right, & I did that for excess & surplus lines business when I was a P&C agent in California. I also had a separate broker's licence for P&C, a special trust checking account & would net out my commission from the 1st payment, if required by the carrier/wholesaler. I was on the hook to the carrier/GA if my client's check bounced. Never had that available for life/health. As I understand it, fewer states are doing the broker's license now. My current East Coast state doesn't. True broker status reverses the contractual legal status of the agent who always represents the carrier, to being a legal representative of the client.
That concept was always fun to explain in licensing or CE classes when I was teaching. I think that complication is one reason insurance commissioners decided to simplify. I had independent agents still swearing they represented their clients. My comparison is to real estate agents who always represent the seller contractually unless they are licensed as a buyer's agent.
We are obligated under other statutes to do the right thing, but we are a company rep for whoever we are selling in a transaction, unless working under the broker's license, that most states don't offer. Typically broker licensing was/is required in selling P&C coverage with non-admitted carriers in states with that licensing arrangement. Non-admitted carrier status is also not subject to client protection by state insurance guarantee funds. That is still true, minus the legal broker situation, when selling non-admitted carriers. Never encountered this distinction in life/health so far.
I don't put broker on my business card, but carriers and GA's refer to independent life/health agents as brokers so often in my state, I gave up resisting calling myself a broker when talking to them.
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