AIG Chargebacks....by the Way

[Todd King]

AIG recently announced they will not charge back due to lapses in the same manner they were before on their GI policy.

Now, if is lapses during the 1st 6 months they will only charge back 25%. After that there are no chargebacks for lapses.

For death though, it's still the same. 100% chargeback for the 1st year and 50% if the client dies within the 2nd year.

 

[goillini52]

AIG recently announced they will not charge back due to lapses in the same manner they were before on their GI policy.

Now, if is lapses during the 1st 6 months they will only charge back 25%. After that there are no chargebacks for lapses.

For death though, it's still the same. 100% chargeback for the 1st year and 50% if the client dies within the 2nd year.

Does that include death by accident?

 

[Todd King]

Good question! They never mention it on the bulletin or on the commission schedule, so I had to call about it.

They told me verbally that it would be treated the same as any other "death" and would have chargebacks within the 1st two years.

 

[myinsurebiz]

Good question! They never mention it on the bulletin or on the commission schedule, so I had to call about it.

They told me verbally that it would be treated the same as any other "death" and would have chargebacks within the 1st two years.

If so - going to sell Columbian <40 and NGL and GWIC 40>

 

[Todd King]

If so - going to sell Columbian <40 and NGL and GWIC 40>

I've been meaning to mention this to you, but unless you are trying to get a client 1st day coverage, then GWIC is about the last place you would put a client for GI. Kemper would be worse, but Gerber, AIG, Settlers (probably) or even referring your client to Mutual would be better for the client.

Once again, the ONLY reason to use GWIC is for an attempt at first day coverage.

 

[Baseball7]

So what's wrong with Great western's guaranteed issue program in your opinion?

 

[goillini52]

Good question! They never mention it on the bulletin or on the commission schedule, so I had to call about it.

They told me verbally that it would be treated the same as any other "death" and would have chargebacks within the 1st two years.

Thanks Todd. .

 

[SammyJ]

Todd you're wrong on Gw's Gi. It has the best chargeback for death in the industry at 100% for 9 months then zero. Somebody with Lung cancer or severe chf might not make it 2 yrs.A lot of difference between living 9 months or 2 yrs for somebody sick.

 

[myinsurebiz]

I've been meaning to mention this to you, but unless you are trying to get a client 1st day coverage, then GWIC is about the last place you would put a client for GI. Kemper would be worse, but Gerber, AIG, Settlers (probably) or even referring your client to Mutual would be better for the client.

Once again, the ONLY reason to use GWIC is for an attempt at first day coverage.

Settlers doesnt do < 40 though . . .

What is so different for GW vs AIG? GW is same 2 year rop + 10% as AIG for about 8% higher premium?

 

[Todd King]

Settlers doesnt do < 40 though . . .

What is so different for GW vs AIG? GW is same 2 year rop + 10% as AIG for about 8% higher premium?

Except for Mutual, Gerber and AIG are two of the lowest when it comes to premium. Not sure how you're figuring your rates, but you're off on the 8% comment.