I have a question regarding replacements. I have a client that was looking for $25k of coverage. I wrote them a policy with Royal Neighbors , effective June 28th. Client lives in GA
and I live in PA. Client has paid their june , july and Aug premiums with Royal.
So here is my question the client calls in today and wants to add another $25k. I wrote them with another carrier as Royal's max is only $25k. Now the new company does not allow replacements through appetical but the have told me they are not replacing and the will keep both in force.
Now say next month or in 8 months after both policies are in force the client decides to cancel the Royal and just keep the new one as it is $3 a month cheaper.
Am I protected for not deeming the new policy a replacement? Should I still have the client fill out a replacement form if the decide to cancel the Royal and just keep the new one since it is cheaper ? I am clear of anything since the client said they are not replacing on the phone interview ? The new policy is effective Sept so worst case scenario is if they decide to drop the Royal they will save $3 a month and their 2 year contestabilty period will end Sept of 2019 instead of June 2019.
Sometimes peoples eyes are bigger than their stomachs and after the see both premium hit the may balk at the one.