STERLING INVESTORS Replacement Chargeback Letter.

jdeasy · 11-02-2009, 07:50 AM

Originally Posted by G.Gordon

Good luck getting out of your Mutual of Omaha tie to AIMC. I tried and it was impossible. The only way is go one year without production. That's near impossible in my market. I don't mind MOO being with them. The clause in question is a "Sterling/Admiral" clause and is not in MOO's papers. I've never had issues with MOO, but these rinky dink jokers mentioned do nothing but muddy the waters.

I have my Admiral and Family Life thru AIMC. They are telling me that I am subject to a $250 fine if I replace an Admiral with Family Life.

I have a case now where one of my Admiral clients complained to me about his Admiral rate increase while I was there about life insurance. He asked if there something better. If he and his wife switch to Family Life, they would save $75/mo. The wife may not qualify to switch, so, if he changes and the wife stays with Admiral, they save about $35/mo.

I spoke to my GA about it. He said that , if I get a signed letter from the family that they brought up the change, I would not have to worry about being fined. I really don't know if that's true or not.

G.Gordon · 11-02-2009, 08:58 AM

That's right.

The clause in question says something like: .... if you initiate the replacement.

Bottom line for them to puch this they have to prove it. My clients are my friends and will be loyal to me.

padthaiforlunch · 11-02-2009, 02:01 PM

This clause is only in my Sterling contract.

Do I need to be worried about Family as well?

JD is AIMC the one telling you you will be subject to the fine? Is it in any of your contracts?

Russ · 11-02-2009, 02:19 PM

I've never heard of a company being able to charge $250 for a replacement.

I have someone to see tomorrow that has a Sterling Investors policy with me that is thinking of jumping to a MAPD w/AARP. There's no replacement notice to sign so I may be okay.

I received this letter from Sterling Investors almost 2 months ago....

"Commission Advance Program Discontinued

Sterling Investors Life Insurance Company's commission advance program is discontinued effective 9-10-09.

All business(including all products: Medicare Supplement, Medicare SELECT, Convalescent Care and Whole Life) with commissions released prior to 9-10-09 will be paid according to your current advancing agreement.

All business with commissions released on 9-10-09 or after will be paid on an as-earned basis.

Payment methods, whether direct deposit or check, will remain the same."......

I've been in the business since 1984 and can't recall companies doing this. It may have happened before but I don't remember it.

SI may be having financial issues. I've only got a few policies with them. Commissions are good, but losing the advance is not good.

jdeasy · 11-02-2009, 02:52 PM

Originally Posted by padthaiforlunch

This clause is only in my Sterling contract.

Do I need to be worried about Family as well?

JD is AIMC the one telling you you will be subject to the fine? Is it in any of your contracts?

Yes, AIMC is telling me that. I haven't been able to find it in the contracts yet. I asked them to send me a copy of something I signed with that in there. They haven't found it yet, either.

Russ · 11-02-2009, 03:22 PM

Originally Posted by jdeasy

Yes, AIMC is telling me that. I haven't been able to find it in the contracts yet. I asked them to send me a copy of something I signed with that in there. They haven't found it yet, either.

It's not in my contract either.

G.Gordon · 11-02-2009, 03:30 PM

It's not in mine either. That's why I'm pissed. My contract was signed 2/06. A collegue I refered to SMS (that won't happen again) called me in March or April of 2006 when he got his Sterling contract from SMS... it had the clause. I made him give me page, paragraph, heading, etc and we read them together over the phone... his did... mine didn't. They added it some time after 2/2006.

Tomorrow I'll copy/past my exchange with J.Wray at SMS. No reaction... just excuses. It appears that the whole of AIMC, SMS, and Sterling is paralized when Mark White is traveling.

retread · 11-02-2009, 08:13 PM

Originally Posted by retread

Yeah.... I just got out my contract with AIMC for SILIC, and under Compensation & Accounting, 1.(d), it says...
"A $250 fee will be charged to Your commission account per occurence, if You initiate a replacement or surrender of an in force Sterling Investors Life Insurance Company policy."
Now I didn't have a problem with that, thinking it is only right to keep agents from churning, but I never conceived of them acting in this regard under your circumstances. This gives me pause to think. Perhaps I will not sell SILIC any more....

FWIW, my contract is dated 6/14/07

padthaiforlunch · 11-03-2009, 03:25 PM

I received an e-mail from AIMC this morning (I made the following bold for emphaisis):

I wanted to let you know that I have an answer in regards to our live chat conversation yesterday regarding Family Life and Sterling.

As you stated in our conversation, Family Life does NOT have that $250 clause in the contract.

However, Sterling does. At this time, that clause is being discussed and it appears that it is probably going to be suspended. Our office will notify you once that decision becomes final and official.

Should you have any questions, please feel free to contact me at the numbers listed below or you may contact the Marketing Supervisor, Bill Devlin, at those numbers as well.

G.Gordon · 11-03-2009, 03:42 PM

That is what I'm being told as well. I still will demand a written retraction to the "threat" issued against my account.
- - - - - - - - - - - - - - - - - -
Joann,

I know I spoke with you on this Friday, but I've been stewing on this and I'm pissed at the lack of professionalism from Sterling. I've re-faxed that letter along with a note demanding a written retraction of that "threat" by the close of business TODAY or I will mail a DOI complaint I have already filled out naming AIMC, Sterling, and SMS. I can't say the relationship between SMS and my office has not been effected and from talking with several collegues Dan's name has been tarnished by his continued "pushing" of the AIMC products with poor ratings and "unfriendly" contracts towards agents.

Gordon Brown

[FONT='Calibri', 'sans-serif']Thanks for your e-mail Gordon! I always appreciate someone telling me the truth!! We have always been the #1 Med Supp FMO in the state of Missouri and it has never mattered what carrier we represent. We are not exclusive to AIMC – we have represented a number of different companies over the years – it has just worked out that AIMC has had the best deal over the last several years. We have one client and that is YOU the AGENT. That is who I work for. I will make sure that Sterling hears your voice.[/font]

[FONT='Calibri', 'sans-serif']Thanks Gordon![/font]
[FONT='Baskerville Old Face', 'serif']JoAnn Wray[/font]

Well they either didn't hear or didn't care. Sterling is closed for the day and I haven't received the retraction.

Action taken.

Gordon Brown

[FONT='Calibri', 'sans-serif']Gordon – I talked to Dan at great length about this morning. He said he got a quick e-mail from Mike White over the weekend that they were all travelling yesterday and today but would be back in touch tomorrow. Let’s wait to see what happens tomorrow.[/font]

[FONT='Calibri', 'sans-serif']Thanks Gordonl.[/font]
[FONT='Baskerville Old Face', 'serif']JoAnn Wray[/font]

So I get a call from Lynn at AIMC/Sterling... where ever she is. They are discontinuing the "clause" enforcement, but they won't put anything in writing. So... they put a threat in writing, but don't have the balls to write a retraction or modification of the contraction. Here's my deal. I don't do business with those I don't trust. What is in place I'll let stand, but don't contact my office for any further business. Eventually all those contracts will die and we'll go our seperate ways.

Gordon Brown

padthaiforlunch · 11-25-2009, 02:13 PM

Just in case anyone from Sterling or AIMC reads the board....

WE ARE STILL WAITING!!!!

Originally Posted by padthaiforlunch

I received an e-mail from AIMC this morning (I made the following bold for emphaisis):

I wanted to let you know that I have an answer in regards to our live chat conversation yesterday regarding Family Life and Sterling.

As you stated in our conversation, Family Life does NOT have that $250 clause in the contract.

However, Sterling does. At this time, that clause is being discussed and it appears that it is probably going to be suspended. Our office will notify you once that decision becomes final and official.

Should you have any questions, please feel free to contact me at the numbers listed below or you may contact the Marketing Supervisor, Bill Devlin, at those numbers as well.

G.Gordon · 11-26-2009, 06:33 PM

Per my last conversation with AIMC... "we will NOT put anything in writing"....

They'll darn sure put "threats" in writing, but they won't recend those threats or state their "stance" on that clause in writing or in public.

If your contract does not have the $250 clause in it... it does have a clause in it stating that they can charge you up to ONE FULL YEARS PREMIUM for inducing a client to drop coverage.

I will not sign up for anything else through AIMC or SMS. What I have inforce as far as company contracts like Mutual of Omaha will have to stay in place, but nothing new will be done.

padthaiforlunch · 11-27-2009, 01:22 PM

Perhaps we need to start a bcoycott thread and get an agent petition pledging not to place any business with sterling as long as the continue to include this kind of bs in their contracts.

How many agents refusing to place business with then will it take?

retread · 11-27-2009, 04:02 PM

Originally Posted by padthaiforlunch

Perhaps we need to start a bcoycott thread and get an agent petition pledging not to place any business with sterling as long as the continue to include this kind of bs in their contracts.

How many agents refusing to place business with then will it take?

Just make sure you differentiate between Sterling and Sterling Investors. Too many people confuse the two, especially those that shoot from the hip.

padthaiforlunch · 01-25-2010, 03:23 PM

And Sterling Investors prices themselves into irrelevancy. 20% rate hike in Co. come May.

G.Gordon · 01-25-2010, 03:41 PM

They've done it here too. Shallow pocket = more rate increases IMO.

I've got two or three clients left on there. Two I can't get in touch with the other "wanted" to stay put. Whatever... see ya.

Russ · 01-25-2010, 03:50 PM

Sterling Investors is going up 7% in Florida as of May 1st, 2010. Their 2nd increase in less than a year.

Their not alone. United World just went up 11.4% +/-, as of April 1st, 2010. I have an 82 year-old with UW and her premium went from $235.17 to $261.98 per month!

Dowejonez · 01-26-2010, 06:57 PM

Is the SMS you all speak of Senior Market Sales, or one of the other ones?

G.Gordon · 01-26-2010, 09:12 PM

Senior Marketing Specialist out of Columbia, MO.