Very interesting and please keep us advised. I have often wondered how some of the larger producers kicking out questionable plans using more questionable ethics survive.
I've received a whopping three letters of complaint over 4 years. Not bad actually and some people you just cannot console. All the complaints were over items that went towards the deductible and were "broke" people I sold who wouldn't deal with a bill.
What's interesting is the carriers made it sound like world war 3 - I get the complaint faxed to me and it's this HUGE production - have to reply within 10 days and my reply will be shared with the person complaining. They want my sales tactics and what was said or not said when I sold the plans.
Just based on those complaints I can't see any agent selling unethically lasting - just HOW do they pull it off?
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And by the way guys, if you want to know just how horrendous some of these "top producers" can be, in about mid 2005 I got into it with a "top agency producer" who will remain nameless when one of his agents lied to one of my leads. Almost verbatim this is what he said to me:
"Go f*** youself loser! My guys sell plans and the client can read about the plans or not read about it. That's what 10 days are for. I write more in a day then you do in a month to go ram that up you a**."
I have received one complaint in 14 years. It happened when I was captive. At the time I was one of the top 21 producing agents in the country out of around 4,000 agents that the company had at that time.
A woman's daughter complained about the LTC policy I sold her mother, claiming all sorts of things. It was all a bunch of BS, I log every conversation I have with both clients and prospects.
I printed all the information I had showing the entire process her mother and I went through before she made a final decision regarding the benefits she wanted. I sent a copy to legal showing each time I talked to her mother, dates, location, times, the basic jest of the conversation and her mothers ultimate decision regarding the LTC policy she purchased and the benefit level.
I heard back from legal a week later telling me to forget it, they would handle it from there. I never heard another word about it.
It pays to keep copious notes, dates, location, times, people present, and topics discussed.
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One was a lab bill - just barely over $100 and the girl flipped out - said "I don't know who's paying it but it ain't me - got rude and cussed at me." I was done with her. Another was an OON complaint that I had nothing to do with - balanced billed, couldn't solve it, client said I lied about the plan's OOP. Complaint obviously went no where. 3rd was a client who hit surgery and claimed I never went over the $2,500 deductible with him. Odd since he chose the plan in-person from the Assurant alternate quote sheet. Still claimed "I never said anything about any deductible and never would have bought a plan with a deductible." Went no where. This is right around the time I started marketing to a better class of people.
17 years, 1 complaint in 1994. I sold a health policy to a guy in San Angelo, Tx. He kept the plan for 3.5 YEARS, corresponded with the company twice. Then complains via attorney to the State Board, saying that he had told me to "Hold the cheque" (Come to find out he had done exacty the same thing with another company, in the same timeline) SOB.
According the the state this kind of complaint is quite common as people think they can get all of their premiums refunded, nothing came of it.
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Make sure that brain is in gear before operating mouth
I am dealing with the MO DOI right now. I had a complaint that their low income subsidy did not roll over. The client said that I told them it would, and I told the DOI that is exactly what I said as it should have.
Knowing that I am in the clear, it is almost amusing to read their letters they send me asking questions. I have gotten a total of 4 letters asking questions. The person sending them should be a politician. She is all over the place asking questions, most which were answered in my first reply.
Other then this game, I have nothing. I do know some top producers that are pretty nice people, but I have met some bastard managers.
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"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." Ronald Reagan
Getting back to the original post it's been my experience that in this field and the field of sales in general high volume trumps everything.
Persistency also plays a huge part in insurance sales. High volume doesn't mean a thing if most of what is sold is canceled.
Most agents who try to "slam" people into buying a policy usually have crappy persistency. In other words, a very high cancellation rate. They are in it for the up-front commission, not the long haul.
You have to know the criteria they are using to define a "top producer". Is it sales or in force premium?
When I was captive it was based on in force premium, not sales. Any schmuck can be a high producer if it is based on sales in the insurance industry. I worked with several of them, they turned in huge numbers of apps written each week, but at the end of the year their in force permium figures sucked.
I think what we're getting at is if you slam 4 people a day and when all the dust settles you're only left with 1 a day at 20% commish that's still six figures by lying and cheating people.
Clients trust you. You don't have to actually lie - just don't disclose anything and cover yourself by sending the brochure:
"Tim, I highly recommend the Right Start. I think it's a great plan and very cost effective. Tim, when was the last time you had an outpatient surgery? Exactly. Why pay for things you most likely will never use."
Can that agent be sued? Nope. He didn't lie and it's his personal belief that Right Start is a good plan. Is it unethical? Sure but I think that's what this post is about. Can the "higher-ups" clamp down or should they clamp down on this type of selling. Should Assurant be rolling these agents under the bus? If you hit the Assurant website and run a quote Right Start has a big red "MOST POPULAR" next to it - obviously an attempt to drive clients to those plans. So when agents drive clients to those plans all of a sudden it's an ethical problem? Sounds like a case of "do what I say not what I do."
I need to correct my previous post. If you run rates at Assurant's site it now lists CoreMed and One Deductible PPO as "popular." That is extremely interesting to me since a while ago Right Start was labled "popular." I'm assuming they have to get bit in the ass to learn.
Maybe it's the same outfit that teaches their agents to flip their entire block of business from carrier to carrier each year so they can get a new commish.
Insurance companies take a loss on 1st year business with commissions, marketing and underwriting costs. So if you take your entire block of GR biz and flip all of them to Assurant at month 12 I'm sure GR isn't impressed with that.
Frank, how much detail do you put into your conversation documentation? It seems like it could be endless.
In that particular case I had almost three pages. The process of her making a decision regarding the benefits she settled on took almost three months. It was not an "emotional decision" for her.
The comment box in the program I use will hold 52, 8 1/2x 11 pages of single spaced type so the amount of information is not a consideration. What is important is the CYA consideration.
Most of my client records simply say where and when I met the client and who else was present. If I had a phone conversation with a relative I also make a note of that.
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