Why Can't Get Money Back After Cancel Ins if Never Needed It?
- Thread starter Drank235
- Start date
So if a carrier (either P&C or Life & Health) returned the premium because a policy did not have to pay, does that mean you would also be OK with returning your commissions?
Because after all, me as a customer purchased a policy from you that I didn't use!
- 1,432
You can have a product that over charges and therefore gives the insurance company extra money to invest.
I'd rather buy a policy that is priced correctly and invest my own money.
I'd rather buy a policy that is priced correctly and invest my own money.
- 8,707
I personally would prefer is Drank235 would realize he has multiple options:
Auto Insurance:
1. Don't Drive
2. Some states allow you to post a bond, save up and post the bond
3. Purchase Auto Insurance
Homeowners Insurance:
1. Don't have a mortgage (Only the lender requires you to have coverage)
2. Why buy a house anyway just rent or grad a refrigerator box
3. Purchase the dang insurance coverage and get on with your life.
Auto Insurance:
1. Don't Drive
2. Some states allow you to post a bond, save up and post the bond
3. Purchase Auto Insurance
Homeowners Insurance:
1. Don't have a mortgage (Only the lender requires you to have coverage)
2. Why buy a house anyway just rent or grad a refrigerator box
3. Purchase the dang insurance coverage and get on with your life.
- 1,118
"Less crazy" and "interesting" don't necessarily mean "good."
For example, "Jack went to the mental hospital after trying to off herself four or five times. Since he got out, he's only OD'd once. He's less crazy and has some interesting stories."
Dave, I drew the ROP analogy in my mind based on your description because ING will automatically convert your ROP value into paid-up insurance if you're about to lapse. I see what you're getting at now, though.
- 3,384
When someone cashes out a NYL or NML whole life contract after 30 years and they didn't die, does the agent get charged back the commission? I expect you know the answer to that. Return of CSV (whole life, Ul or ROP term) is not considered a refund of earned premium to the insurance carrier nor the agent. It is, up to basis, a return of premium (and not taxable unless it was tax-deducted) to the policyowner. Life insurance companies "return premium" all of the time, either by loan or surrender value. The agent who sold the policy is not required to return earned commission. It was already factored into the COST OF AQUISITION. Why would P&C be any different? P&C doesn't have aquisition costs?
BTW, that is exactly what is going to happen with health insurance under Obama-mama care. 80% MLR or refund the surplus. Goes into effect in six months. Do you think that any health insurance company would charge agents back for not meeting 80% MLR and having to issue a refund?
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I wasn't really being serious, just saying that there might be a small market for ROP P&C product. Of course very few would do it because Suze Orman or Dave Ramsey would insist on what a terrible idea it is to buy "whole-auto".
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- 15,041
Its going to be a brave new world. I'm not suggesting it would happen, but aren't you going to hate yourself if something like this happens?
- 3,384
If it did, two things would likely happen.
1. Sales would plummet for three years (no new blood) and,
2. NFP carriers would probably fat cat off of agents, at least in CA.
- 15,041
- 3,384
Not for profit. I was looking at SB 890 or 900 in CA the other day and noticed something very interesting right in the bill itself. Carrier IFP medical loss ratios!
You guess it, in CA the two NFP carriers are both operating IFP blocks of business well above the 80% MLR threshold. The for-profits are not.
So, when the axe comes a-choppin', hmmmmmmmmmm.
I know the RSMs for one for-profit carrier have begged home office NOT to release commission cut rates until December (using the 30-day notification rule in the contract for agents) because they are afraid if they announce too soon, the NFPs will simply come in a point or two higher and snag the majority of agent business.
You guess it, in CA the two NFP carriers are both operating IFP blocks of business well above the 80% MLR threshold. The for-profits are not.
So, when the axe comes a-choppin', hmmmmmmmmmm.
I know the RSMs for one for-profit carrier have begged home office NOT to release commission cut rates until December (using the 30-day notification rule in the contract for agents) because they are afraid if they announce too soon, the NFPs will simply come in a point or two higher and snag the majority of agent business.
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