What's Your Cut-off for the Month for New Apps?

[Justin Bilyj]

When do you stop taking apps for the current month's effective date? I know some companies have an effective date of the 1st even though they draft mid month, and I wasn't sure when you just take the app for the next month as opposed to replacing for the current month.
Appreciate any advice!

 

[goillini52]

When do you stop taking apps for the current month's effective date? I know some companies have an effective date of the 1st even though they draft mid month, and I wasn't sure when you just take the app for the next month as opposed to replacing for the current month.
Appreciate any advice!

It depends on whether or not you have time to stop the bank draft before their current Supp is drafted again. Some companies will let them do it over the phone.

 

[Justin Bilyj]

But even though let's say they draft on the 15th but with an effective date of the 1st of that month, and usually drafts go 3-4 days before the actual date of draft, can you still stop the plan even though they have used up almost 2 weeks of it?
Can you back disenroll to the 1st with most companies before the draft date.
Sorry if this is convoluted, just want to make sure.

 

[senior-advisor-indiana]

When do you stop taking apps for the current month's effective date? I know some companies have an effective date of the 1st even though they draft mid month, and I wasn't sure when you just take the app for the next month as opposed to replacing for the current month.
Appreciate any advice!

It depends what company I'm using and what company I'm replacing. If it's the 31st and I can get them issued and the other company cancelled by their draft date then I'll write it effective for the 1st. Of course that would be hard to do if you were writing moo, gerber, or others that are slow at underwriting.

 

[goillini52]

But even though let's say they draft on the 15th but with an effective date of the 1st of that month, and usually drafts go 3-4 days before the actual date of draft, can you still stop the plan even though they have used up almost 2 weeks of it?
Can you back disenroll to the 1st with most companies before the draft date.
Sorry if this is convoluted, just want to make sure.

Sorry if I'm not quite following you. You can't disenroll from a Supp. If the current company drafts again, you just make the new one effective the following month. You might have to have the customer sign a note to change the effective date. Most companies will give you about 2 weeks leeway on the draft date...you'll just have to check with each company. Hope I understood what you were asking.

 

[senior-advisor-indiana]

But even though let's say they draft on the 15th but with an effective date of the 1st of that month, and usually drafts go 3-4 days before the actual date of draft, can you still stop the plan even though they have used up almost 2 weeks of it?
Can you back disenroll to the 1st with most companies before the draft date.
Sorry if this is convoluted, just want to make sure.

It is a PITA to get a company to refund a premium because you cancelled too late. Some won't some will....

 

[Justin Bilyj]

I wish there was a cheat sheet of the billing and effective date practices for the companies...

 

[GreenSky]

I tend to move this out many weeks. If it's past the 15th, I tell them we'll use the 1st of the following month to be sure they have a new ID card and other information.

That way THEY have time to stop the current company's draft.

Rick

 

[senior-advisor-indiana]

I wish there was a cheat sheet of the billing and effective date practices for the companies...

99% of effective dates are on the 1st.

 

[GreenSky]

99% of effective dates are on the 1st.

Prove it! We can't just take the word of a guy on the internet that posts from the shadows.

Rick