Changing a Standard Rating to Preferred

Go Green · 06-10-2009, 04:42 PM

When can a client apply for a new rating on a just issued policy? For example, a client is issued a policy with a standard rating due to cholesterol. If he aggresively attacks his cholesterol, what is the time frame and procedure to attempt to secure a better rating? Any advice or opinions will be appreciated. Thanks!

annuityseller · 06-10-2009, 04:51 PM

Not something I do everyday but I think most companies would make you wait a year??that's what happened to me with lincoln benefit.

dgoldenz · 06-10-2009, 05:01 PM

Depends on the carrier and what their guidelines are. You can always shop the case around to see if anyone will give him preferred now that it's under control. Whichever company comes out best you should go with. No need to stay with the same carrier unless there's a good reason.

djs · 06-10-2009, 07:38 PM

Check the underwriting guidelines. When they are met, reapply. Hope nothing else changed. Beyond getting in compliance with what underwriting requires, I don't think you'll run into any time issues for swapping policies.

They will want the cholestoral well controlled for a period of time though, probably at least a year.

Dan

InsuranceKid · 06-11-2009, 01:25 AM

I would echo what Dan said and wait until the client meets the underwriting guidelines before reapplying. Usually if you contact the carrier they will tell you how long the client needs qualify as preferred before being able to change the policy. This may take up to a year, as was previously stated. dgoldenz had a good idea when he mentioned shopping around for another policy. The only problem with this is that you have to make sure that you can replace the existing policy with a new policy, so check with the carrier to make sure this is possible. Then go with the company that gives your client the best policy at a preferred rate.

Dave

dgoldenz · 06-11-2009, 06:09 AM

Originally Posted by InsuranceKid

I would echo what Dan said and wait until the client meets the underwriting guidelines before reapplying. Usually if you contact the carrier they will tell you how long the client needs qualify as preferred before being able to change the policy. This may take up to a year, as was previously stated. dgoldenz had a good idea when he mentioned shopping around for another policy. The only problem with this is that you have to make sure that you can replace the existing policy with a new policy, so check with the carrier to make sure this is possible. Then go with the company that gives your client the best policy at a preferred rate.

Dave

Why wouldn't he be able to replace the policy?