This is a Great Business.

[billberry12]

I'm sure it depends on the companies involved. I've not had that probelm with any of the companies I have done business with, but I have heard of some over the years that have done that.

 

[HomeService]

For LTCi, they cannot. I have not seen one example of it in my 17 years in the LTC business.

The only example I can give you was a few years ago there was a situation where a policyholder disliked her present agent. He gave her bad advice on a number of issues and she called the company to have a new agent assigned.

I was asked if I'd like to be her new agent? I said 'yes'. I became her new agent, but her original agent of record continued to receive renewals.

I only asked to be her new agent for the possibility of future referrals.

So, here's an agent that "lost" his policyholder, yet still continues to receive renewals.

Can you give me one example where a LTC agent had his policyholder "reassigned" for any reason and lost his/her renewals?

Well, I can give you thousands. United american lost at least hundreds of clients, maybe thousands of clients when they got rid of LTC here in TX, and GAFRI is currently pulling shenanigans with their block of ltc business. I have heard rumors of changes with NYL. So, they may not be "re-assigned" really to anything other than the waste paper basket. BTW, I used to talk to agents around here who sold Transport Life LTC out of Dallas, in the 1980's, and they were fully vested for life... wonder if they still are getting checks? As of about ten years ago they were, but I wonder how much of that stuff is on the books, still? I wonder who bought that block? Just a side note.
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I'm sure it depends on the companies involved. I've not had that probelm with any of the companies I have done business with, but I have heard of some over the years that have done that.

Yes, keep in mind I'm in TX and this is still very much the wild west!! hee hee
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Oh crap, Arthur, I see the problem, here. I'm reporting from TX, you are in NY. I used to live in NY. Two different worlds.

 

[Arthur Rudnick]

Oh crap, Arthur, I see the problem, here. I'm reporting from TX, you are in NY. I used to live in NY. That state is for real, real regulations, laws mean things, there. See, in TX, it's not that strict at all, the wild west, insurance laws are not the same here. It's a little more "fast and loose" here. The
insurance department will still hand out fines and stuff, here, but it's a different world in TX as compared with NY. The insurance department here is to be respected, in NY it is to be feared.

I hear ya, but I'm not certain that this is just a "NY Thing". We have the same national carriers as the rest of the world and if Genworth (as an example) has rules in place, I'd assume those same rules are followed throughtout the country.

Bill is in MS and he also says that he's never seen a carrier arbitrarily reassign an agent of record.

Now, is TX different? Yes, up here in NY we don't have cattle roaming Main street but for the major national carriers, I have to assume they all work the same.

GAFR, Transport Life? Never heard of them, but since they are not licensed in NY, you're right, I wouldn't be aware of their rules and regs.

I would have to assume that if they did have the ability to change the Agent of Record, that's clealy stated in their agent contract?

 

[HomeService]

I dunno for sure, arthur, I just hear rumors and stuff, I never sell the stuff so I have no clue what's in the contracts. contracts were made to be broken, BTW, I edited my quote so maybe you could as well? thanks, I do not want to run down the insurance department of TX, but NY is wayyyyy more strict.

 

[Arthur Rudnick]

I do not want to run down the insurance department of TX, but NY is wayyyyy more strict.

You're right. The NYS DOI is generally viewed by outsiders as a pain in the ass. In other states, new products are usually approved in a couple of months. In NY, it can take a year or more for the DOI to approve anything. The carriers hate doing business here.

But.....
On the flip side, the NYS DOI really looks out for the NY consumer and maybe that's why everything here is delayed? It may also be because of NY's dysfuncional rules and regs. Most LTCi carriers don't want to get involved in the NY market.

 

[HomeService]

when I lived there in NY, I did not have a problem with them. The test was little more tough, for the license, but I liked how well it was run. It is different here, as you probably know.