Agent on Record

[HoosierLife]

I have a guy that recently bought a 25K WL policy through AGLA. For some reason he doesn't like the agent and wants a new agent. But he wants to keep his old policy. He's 52 in good health and is paying $46/mo.

Is there any benefit to becoming the agent on record? Is there another company that I could put him with that is better priced. I looked at RNA and they were a little higher priced.

How would I go about becoming the agent on record?

 

[moonlightandmargaritas]

Of. Agent of record.

 

[Larry Tew]

Of. Agent of record.

You went to the trouble of setting him straight on terminology, why not answer his question? Nevermind... I got this.

There really isn't an "agent of record" situation for life like you're thinking. If the insured's writing agent is still appointed with the company, the agent will continue to get renewals, so there would be no financial value for you becomeing the servicing agent.

Even if the writing agent was no longer appointed, you would have to be appointed with the company to become the servicing agent, and even then you likely would not inherit the renewals. In this case, the insured would simply become an orphan and the insurance company would assign another agent to service the policy.

If the insured doesn't like the agent, he can do business with you moving forward and leave the existing policy in place. If there is something wrong with the policy (unlikely), you can replace it - BUT... to replace it just because he doesn't like the first agent is never reason enough to roll the policy.

 

[moonlightandmargaritas]

You went to the trouble of setting him straight on terminology, why not answer his question?

Geez Larry, I was trying to tee it up so you could share your awesome knowledge and wisdom!

 

[Larry Tew]

Geez Larry, I was trying to tee it up so you could share your awesome knowledge and wisdom!

Oh... well, my apologies. I erroneously thought you were just zinging the OP to make him look stupid for the fun of it with no intention of being helpful. My bad. Thanks for the setup.

 

[Norwayguy]

You went to the trouble of setting him straight on terminology, why not answer his question? Nevermind... I got this.

There really isn't an "agent of record" situation for life like you're thinking. If the insured's writing agent is still appointed with the company, the agent will continue to get renewals, so there would be no financial value for you becomeing the servicing agent.

Even if the writing agent was no longer appointed, you would have to be appointed with the company to become the servicing agent, and even then you likely would not inherit the renewals. In this case, the insured would simply become an orphan and the insurance company would assign another agent to service the policy.

If the insured doesn't like the agent, he can do business with you moving forward and leave the existing policy in place. If there is something wrong with the policy (unlikely), you can replace it - BUT... to replace it just because he doesn't like the first agent is never reason enough to roll the policy.

There would be one reason to become the AOR on this policy if it wasn't going to be replaced. That is it would allow you as the agent to get reports and should place you in the drivers seat of any future replacement but even then its only helpful if you remain the agent and service the policy for likely no commission. I used to do this all the time with annuities that made no sense to replace at the time I was writing a new policy for my client because at some point it would make sense to roll that old policy and I would have all the info and control all the policies in the house.

 

[dabulls]

I know this is a really old post but,
If I were to AOR an existing client's almost expiring term policy and convert it to a UL would I get the commission?
We are still going to do the conversion, it would just be nice to be paid as well.

 

[Justin Bilyj]

If you can mine him for referrals is the only benefit for aor a life policy imo

 

[WinoBlues]

I know this is a really old post but,
If I were to AOR an existing client's almost expiring term policy and convert it to a UL would I get the commission?
We are still going to do the conversion, it would just be nice to be paid as well.

Mostly yes. I do it all the time. Same with purchase options. A few companies will pay the old agent if active even if you AOR. I learned that the hard way. 5,000 hard ways;(. Call the company commission department. When doing the three way to get the policy information always ask if the current agent is active. Sometimes you may need to get a release from one channel to the new one. Lastly some companies do not care who the agent is on the old policy and pay the new agent with out an AOR.

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If you can mine him for referrals is the only benefit for aor a life policy imo

I agree that it is one of many benefits.