Now I heard everything...

[rousemark]

So even if a client that was previously GI is now eligible for level you wouldn't write them? Call me guilty.

Lots of variables there buf I did, I would do so with the full knowledge that the current company may well terminate me and stop all renewal payments because of it. . I would not fail to fill out the replacement just to keep the current company from knowing about it.

 

[springbokhouston]

Lots of variables there buf I did, I would do so with the full knowledge that the current company may well terminate me and stop all renewal payments because of it. . I would not fail to fill out the replacement just to keep the current company from knowing about it.

I 100% agree. I have never replaced a policy without filling out a replacement form.

 

[rousemark]

Agreed, I would never replace a customer for $2 per month but if I run into a policy that's a year old with a 2 year wait I certainly would place them level if they qualified. There's a reason why replacement rules are in place.

I thought the discussion was concerning an agent "rolling" their existing book of business.. In that case, he/she would be the one that wrote the 2 year wait and all of a sudden he/she has something better? So in order to give him the possibility of immediate coverage 10 or 11 months earlier, in exchange for extending the client's contestable period by another 12 or 14 months? It could end up with a claim that will not pay under the new policy that would have paid full benefit under the old plan.

 

[goillini52]

There in lies the problem. You may say $2 a month is a benefit to the client, another may say it is $20. Where does a company draw the line? The insurance company gets caught in a bad position because if they make rules to catch the bad guys, they also affect quality agents in the process.

Lets evaluate the example above, DOI would see that your client saved $24 on the year and reset their contestable period, you made an additional $800 in commission. Explain that to a jury and see how you do.

That's a good point. I've only done it a couple of times to put the client in a better place, but I made it very clear to them about the importance of being honest about the health questions and explain the 2 year Contestability Clause and how it would affect their policy if they die during the 1st 2 years.

I always go over it anyway, even if not replacing.

 

[rousemark]

Don't get me wrong. I have replaced business numerous times over the years but I have never rolled my own book. And, any time you replace business, no matter the circumstance, there is a matter of risk.

 

[goillini52]

Don't get me wrong. I have replaced business numerous times over the years but I have never rolled my own book. And, any time you replace business, no matter the circumstance, there is a matter of risk.

I didn't realize we talking about rolling a book. That's asking for trouble in so many ways!!!

 

[Rirwin]

Don't get me wrong. I have replaced business numerous times over the years but I have never rolled my own book. And, any time you replace business, no matter the circumstance, there is a matter of risk.

Regardless if it’s better for the customer or not, churning your business is against the contract an agent signs.

If an agent is truly interested in leaving the customer in a better place refer it to another agent. But most would rather break their contracts bc it’s really not about the customer but the commission.

 

[FinalExpenseDojo.com]

Regardless if it’s better for the customer or not, churning your business is against the contract an agent signs.

If an agent is truly interested in leaving the customer in a better place refer it to another agent. But most would rather break their contracts bc it’s really not about the customer but the commission.

 

[nfl72]

New
Agreed, I would never replace a customer for $2 per month but if I run into a policy that's a year old with a 2 year wait I certainly would place them level if they qualified. There's a reason why replacement rules are in place.


I did this exact same thing and got a warning from the company. In my case I called underwriting and ran it by them and they told me to fax in the new app. I then got a call from the same companies higher up telling me to never do it again. So in reality we are not supposed to do the best thing for the client, in the eyes of the company.

 

[Life Hawk]

So in reality we are not supposed to do the best thing for the client, in the eyes of the company.

As I read that I had to give a little chuckle... now matter what side of the fence you tend to "lean" on this issue, this discussion will continue as long as replacements are allowed.

Just today ran into a MOO client who is (graded or modified, your preference) and called Trans on his issue.. underwriting told me I could write him preferred except he is on insulin which runs him standard, but... day one coverage.

What should I do...

He took is plan out 4 months ago with MOO... that helps make the situation a bit clearer.

That said though, if I had stopped where the MOO agent did (assuming he is not captive) I would have not explored other options... to the betterment of the client.