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Reply to New to the Industry. Whole Life     
Old 10-26-2012, 09:43 AM   #11
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New to the Industry. Whole Life Re: New to the Industry. Whole Life
a lot of agents don't want to be bothered by life settlements anymore. The compensation on deals is nowhere near a few years ago, the due diligence conducted by providers borders on irrational, and the process still takes too long.....and that's before you take into account deals under contract getting killed, repricing taking place during contract phase (and it's never higher) and the risk/vs reward for an advisor getting involved in settlements...it's easy to see why the volume of cases has declined drastically over the past few years.
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Old 10-26-2012, 11:51 AM   #12
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lifesettlementadvisor on New to the Industry. Whole Life
 
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New to the Industry. Whole Life Re: New to the Industry. Whole Life
Regardless of past experience, it is hard to imagine that if a producer has an 80 yr old client call and say that he no longer wants/can afford a 1M UL with no CSV and is planning to lapse it unless there is another option; that the producer does not explain mention life settlements.

There has been a large trend this year in the industry of non-producers (mostly CPAs and lawyers) working files for their clients. It will be interesting to see if this continues in 2013.

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Old 10-26-2012, 02:05 PM   #13
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New to the Industry. Whole Life Re: New to the Industry. Whole Life
Do you think agents have an obligation to discuss settlements with clients?
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Old 10-26-2012, 02:09 PM   #14
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pcbinsurance on New to the Industry. Whole Life
 
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New to the Industry. Whole Life Re: New to the Industry. Whole Life
When it comes to them wanting to lapse the policy and get nothing (or very little) back OR you steering them to an LS where they will get some money back, what do you think?

Of course it should be our obligation to let them know about this option. Where I would be extra careful is trying to market this or "sell" someone on this option when they might have better options available.
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Old 10-26-2012, 02:13 PM   #15
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New to the Industry. Whole Life Re: New to the Industry. Whole Life
Yeah, but why would the agent have an obligation to discuss settlements with client? What if they don't have a license for life settlements?
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Old 10-26-2012, 02:15 PM   #16
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pcbinsurance on New to the Industry. Whole Life
 
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New to the Industry. Whole Life Re: New to the Industry. Whole Life
Of course, always check the State you are in to see what, if any, requirements are needed. Simply mentioning this option to a "qualified" client who is about to lapse a policy is simply fulfilling your fiduciary responsibility to that client.

Better yet, contact our resident LS expert on this Forum.
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Last edited by pcbinsurance; 10-26-2012 at 02:19 PM.
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Old 10-26-2012, 02:25 PM   #17
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New to the Industry. Whole Life Re: New to the Industry. Whole Life
There is no way that the agent has an actual obligation to discuss life settlements with their clients unless that agent has a life settlement license, right?

Where does the insurance license say that an agent has a fiduciary responsibility to discuss a settlement?
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Old 10-26-2012, 02:28 PM   #18
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VolAgent on New to the Industry. Whole Life
 
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New to the Industry. Whole Life Re: New to the Industry. Whole Life
Originally Posted by pcbinsurance View Post
Of course, always check the State you are in to see what, if any, requirements are needed. Simply mentioning this option to a "qualified" client who is about to lapse a policy is simply fulfilling your fiduciary responsibility to that client.

Better yet, contact our resident LS expert on this Forum.
Agents by definition do not have a fiduciary duty to insureds.

That said, a good agent is going to look out for his clients and will recommend good options. A life settlement just may be a good option for an older client in poor health.

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Old 10-26-2012, 03:07 PM   #19
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New to the Industry. Whole Life Re: New to the Industry. Whole Life
I've seen a lot of info floated out there by LS industry claiming the "fiduciary responsibility" of insurance agents to discuss life settlements...but have not seen anything that actually proves a fiduciary responsibility.

Obviously, it's in LS industry to promote this as then every agent would have to disclose settlement option to insured, etc..
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Old 10-26-2012, 03:12 PM   #20
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pcbinsurance on New to the Industry. Whole Life
 
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New to the Industry. Whole Life Re: New to the Industry. Whole Life
Actual obligation? Implied obligation? Moral obligation? Fiduciary obligation?

Whatever you wish to call it. If you have an 80 yr old client who is going to let a policy lapse (and get nothing in return or very little) and you are aware of a possible solution that can help that client, are you going to let them know?

Check your State for licensing requirements if any.
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