AARP Term and Globe

[indiana260]

Billy has been in this game a lot longer than you and I, and is open enough to bounce different topics off of this forum.

He didn't say anything about his up line not teaching these things, we actually went over this on a training call on Monday.

Also, he only works "up to" 15 leads a week and still manages to hit around $3,000 in ap, weekly.

That's a 200 Pay Per Lead.... freaking HUGE in Florida!

My post was a joke because this is the way all the recruiters always pimp their services.

 

[nfl72]

"State law usually prohibits prohibits mentioning if an insurer is not part of a guarantee fund at point of sale."


]So does that mean it's ok to mention that an insurer "is" protected by the state guarantee fund?

 

[NSRH]

From foresters material

b. Maintenance of Reserves
Fraternal benefit societies are responsible for their own solvency and
reserves. They are not members of the Canadian guarantee fund, Assuris,
or the U.S. state guarantee funds. This means they cannot be assessed to pay
for the insolvency of other carriers. However, this does mean that in the event
they themselves become insolvent (e.g. that the reserves for a class of
certificate become impaired) the Board of Directors may decide to assess
the membership to restore the deficiency.
The assessment is done either by reducing benefits, or by requiring
payment of an equitable proportion of the deficiency. The assessment
is often temporary.
State law usually prohibits prohibits mentioning if an insurer is not part of a
guarantee fund at point of sale.

This stands true for ALL fraternals (at least every single one I have ever seen). I don't really understand the counterargument since it's simply a fact. You can't argue facts.

The language may not be so prevalent on all certificates, since a certificate is never as detailed as a policy.

I got a PM today confirming that "in the state of Florida if you sell a fraternal certificate then in the packet you deliver after issuance there is a page WARNING consumers that they are giving up consumer protection rights". Not my words, but words from the person who PM'd me.

The point is AARP has never raised rates on existing policy holders, so to use that as your tactic is fine (I suppose), but keep in mind, if your replacing with a fraternal you should educate your customer a little more, since fraternal cannot guarantee they will execute on the original expectations of why a customer bought the policy either. Although I don't know of one fraternal that has done that. So I suppose the risk is the same.

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You can't truly be that stupid?

It's guaranteed in the policy. That means it's guaranteed by the company that issued the policy.

Well, fraternals dont issue policies, so they cant be guaranteed there.

I also know a thousand insurance companies and scores of DOI's that would gladly take you to task on that and "teach you a lesson".

But you truly can't be that stupid

 

[Norwayguy]

"State law usually prohibits prohibits mentioning if an insurer is not part of a guarantee fund at point of sale."

]So does that mean it's ok to mention that an insurer "is" protected by the state guarantee fund?

No actually you can't sell based on the guarantee fund...it's pretty silly hair splitting.

 

[WinoBlues]

It sure seems to me that back when I was using Foresters as my go to many heavy hitters on this forum trash talked them because of what the contract stated on page 16 about the possibility of premiums being raised to cover shortages.

Now back to the original question. When I am going up against AARP or Globe or Trustage or CUNA etc.,

I sell myself. If you sound and act like you know what your doing, they will see the benefit of having a specific agent with whom they can deal with if a question were to arise.

That.

.............

 

[jdeasy]

This stands true for ALL fraternals (at least every single one I have ever seen). I don't really understand the counterargument since it's simply a fact. You can't argue facts.

The language may not be so prevalent on all certificates, since a certificate is never as detailed as a policy.

I got a PM today confirming that "in the state of Florida if you sell a fraternal certificate then in the packet you deliver after issuance there is a page WARNING consumers that they are giving up consumer protection rights". Not my words, but words from the person who PM'd me.

The point is AARP has never raised rates on existing policy holders, so to use that as your tactic is fine (I suppose), but keep in mind, if your replacing with a fraternal you should educate your customer a little more, since fraternal cannot guarantee they will execute on the original expectations of why a customer bought the policy either. Although I don't know of one fraternal that has done that. So I suppose the risk is the same.

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Well, fraternals dont issue policies, so they cant be guaranteed there.

I also know a thousand insurance companies and scores of DOI's that would gladly take you to task on that and "teach you a lesson".

But you truly can't be that stupid

It is a policy and it is a contract. And the contract says the rates and face are guaranteed.

You are just being slippery as usual.

The AARP policy clearly says that the rates are not guaranteed. The fraternal certificates, policies, contracts, what ever you want to pretend to call them, do guarantee the rates on whole life.

But, be my guest and have those insurance companies and DOI's teach me about contract law.

I will be waiting.

You are selling illegally and teaching agents to sell illegally.

But, you area known thief. What's lying to you? Nuttin!!

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"State law usually prohibits prohibits mentioning if an insurer is not part of a guarantee fund at point of sale."


]So does that mean it's ok to mention that an insurer "is" protected by the state guarantee fund?

You cannot use the existence of the state guarantee fund to sell for or against an insurance company.

And it's the insurance companies that press for that regulation.

There is no such thing as a "fund" in any state that's just sitting accumulating money with an administrator ready to disperse money in the case of an insurance company failure.

Companies have to contribute after the fact and after all other means have been tried to rescue the company.

Fraternals are actually better equipped to handle a problem if it arises and certainly could handle it much faster.

When Shenandoah went through receivership the policy holders money was held up for years.

They did pay death claims but people could not access their cash value until the receivership was resolved.

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I've lost exsisting business over MOR so I'm sure you've had to conserve biz based on thag before. Would love to hear what you tell em' JD

Actually been pretty rare that I've had to deal with that. But I've never lost one.

I've had more issues with agents illegally bringing up the state guarantee fund. But I've been able to handle those too.

That one is usually handled by telling the insured to ask for any of that in writing. Only the truly stupid will put that in writing.

And then they are out of the business shortly after doing so.

But if that bell gets rung it's impossible to unring it so it has to be addressed.

To me it's a good thing that a fraternal can act quickly to handle a problem. I used to believe that all things being equal that I would rather write a traditional company than a fraternal. And I'm sure I've posted that over the years.

Today I do not believe that. I would rather write a small fiscally sound fraternal over any traditional company out there.

That obviously comes across to people when I explain it.

 

[Baseball7]

"But Mr.JD that agent said your company could change my policy and thats why he told me to go with his."

And you say?

 

[NSRH]

It is a policy and it is a contract. And the contract says the rates and face are guaranteed.

You are just being slippery as usual.

The AARP policy clearly says that the rates are not guaranteed. The fraternal certificates, policies, contracts, what ever you want to pretend to call them, do guarantee the rates on whole life.

But, be my guest and have those insurance companies and DOI's teach me about contract law.

I will be waiting.

You are selling illegally and teaching agents to sell illegally.

But, you area known thief. What's lying to you?

What's illegal is calling a certificate issued by a fraternal benefit society a policy. Those words are not interchangeable, and rightfully so. If someone can prove you are doing that in a sales presentation that would easily get you in hot water with any DOI, especially in the state of FL.

I'm sure you're not doing that, since you know better, but a lot of newly licenced agents may not be aware of the difference.

Especially if they are replacing an AARP plan with a fraternal. That's really the point

 

[KRobby]

"But Mr.JD that agent said your company could change my policy and thats why he told me to go with his."

And you say?

He probably simply tells them to have the accuser put those accusations in writing.

 

[diesel]

rates and benefits are guaranteed but members are subject to assessment if fraternal reserves fall short