Insurance Agent Forum

[Cenla Agent]

Anyone know anything about Old American? Their niche is marketing final expense policies to seniors. They generate leads via telemarketing, direct mail, etc. Their parent company is Kansas City Life. The website is http://www.oaic.com

I have received a few direct mail recruiting pieces from them and spoke to one of their managers a few weeks ago.


I wasn't sure whether to put this in this forum or the Senior products since all the threads in the Sr. forum seem to be focused on health products.

[Winter]

[quote=Cenla Agent;12004]Anyone know anything about Old American? Their niche is marketing final expense policies to seniors. They generate leads via telemarketing, direct mail, etc. Their parent company is Kansas City Life. The website is http://www.oaic.com

Their AM Best financial rating is below A so your E&O will not cover you in your dealings with them- assuming you see the need for E&O.

Winter

[Cenla Agent]

[quote=Winter;12040]

Originally Posted by Cenla Agent

Anyone know anything about Old American? Their niche is marketing final expense policies to seniors. They generate leads via telemarketing, direct mail, etc. Their parent company is Kansas City Life. The website is http://www.oaic.com

Their AM Best financial rating is below A so your E&O will not cover you in your dealings with them- assuming you see the need for E&O.

Winter

Yeah, I think their rating is B++ or B+. The parent company is at least A- but I guess that doesn't matter.

E&O only covers companies with ratings of A- or better?

[senior-advisor-indiana]

Are they captive?

[senior-advisor-indiana]

Some B rated companies require E&O

[Winter]

Originally Posted by senior-advisor-indiana

some B rated companies require E&O

True. I was referring to the other scenario though. Most E&O coverage will not cover B companies, at least under their standard, lowest cost plans so the agent would not be supported in any actions involving a B rated company.

Winter

[Cenla Agent]

Originally Posted by senior-advisor-indiana

are they captive?

I don't think so. I took notes from my conversation a couple of weeks ago but I don't have anything there about being captive. I'm sure I asked about it, and unless I have it confused with another conversation I had around the same time, I think the main thing is that they don't want you taking their leads and using them to sell competitors products, which is understandable. I seem to remember him saying that you could do whatever you wanted to do on the side but that once this got going you wouldn't have much time for anything else.

Also, renewals are vested from day one. I haven't been in the business long, but I've never seen a captive operation where renewals vest from day one. Most of the ones I've seen vest after 3-5 years.

[senior-advisor-indiana]

I might call them then

[armydad]

I talked to them about 3 months ago. It sounded pretty good until I asked about the leads. $21 each. Which I've been told is very high for being captive. They do have a nice web site.

[Cenla Agent]

Originally Posted by armydad

I talked to them about 3 months ago. It sounded pretty good until I asked about the leads. $21 each. Which I've been told is very high for being captive. They do have a nice web site.

That is correct. Either that or take a 30% commission cut and not have to pay for the leads up front.

Also, they would never send me a contract even after repeated attempts. They would only send the appointment form.

[mswebb06]

I spoke to one of their managers just last week Thursday or Friday to be correct, I was roughly told the same thing. 90% contract to start as prodcution increases that can go up to 115% they are using telemarketing leads but I was told on 14$ a piece. Manager claims they are seeing a 25% closing ratio with these leads

[Salvo]

Has anyone pursued selling for them since this last blog? Any decent results?