Bad Replacements

[senior-advisor-indiana]

How often do you guys deal with this in the FE market? I haven't wrote a ton of policies but in the last 2 months I have had 2 agents attempt to replace me by giving the client less coverage for more money or the same coverage for more money. There seems to be a lot (well 2 so far) of sleazy FE agents in this area.

I was able to save the policies but its a PIA having to deal with screw ups like this. It would be nice if they had to send in a replacement form stating the reason for replacement.

 

[donamese]

It usually isn't much of an issue since the client is typically looking for lower rates. The few times I ran into it, I provided the client with the DOI address and encouraged them to write a letter notifying them about the specific agents. I know some DOI are getting stricter at evaluating replacements. While it is subjective, (is $1 a month really worth a 2 year contestible period), a flat out premium increase for the same or less coverage should be obvious to them.

 

[VolAgent]

Wait... Something is wrong here.

Tins and Rick both told me you only sold one policy so far this year. Are you saying two different people tried to replace it? And why isn't your mother more loyal?

 

[senior-advisor-indiana]

Wait... Something is wrong here.

Tins and Rick both told me you only sold one policy so far this year. Are you saying two different people tried to replace it? And why isn't your mother more loyal?

I'm telling my mama what you said...
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It usually isn't much of an issue since the client is typically looking for lower rates. The few times I ran into it, I provided the client with the DOI address and encouraged them to write a letter notifying them about the specific agents. I know some DOI are getting stricter at evaluating replacements. While it is subjective, (is $1 a month really worth a 2 year contestible period), a flat out premium increase for the same or less coverage should be obvious to them.

With one of the clients, she was told that she was getting 3k more in coverage, which was a flat out lie. Then the other client was told that the policy I sold him wasn't a cash value policy and the new one was. They were easy saves but only because the clients let me back in to talk to them.

 

[Stephen]

An LH agent door knocked one of my clients that has had a graded policy in force for 4 years, and talked her into surrendering it for a couple hundred dollars cash and replacing with a more expensive policy and a new 2 year waiting period.

 

[Eldo]

I'm telling my mama what you said...
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With one of the clients, she was told that she was getting 3k more in coverage, which was a flat out lie. Then the other client was told that the policy I sold him wasn't a cash value policy and the new one was. They were easy saves but only because the clients let me back in to talk to them.

May I ask who the company was you placed the policies with and the companies doing the attempted replacement?

 

[senior-advisor-indiana]

An LH agent door knocked one of my clients that has had a graded policy in force for 4 years, and talked her into surrendering it for a couple hundred dollars cash and replacing with a more expensive policy and a new 2 year waiting period.

I can't believe how ignorant consumers can be with these simple whole life policies. They don't even need to read the policy, just open the first page and look at the face amount and premium.
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May I ask who the company was you placed the policies with and the companies doing the attempted replacement?

The one I sold a 5 star. An agent attempted to replace it with Old American. The second was a husband/wife I sold 5 star/Oxford, agent tried to replace with Americo. They have both had a b day since I write them too.

 

[Eldo]

I can't believe how ignorant consumers can be with these simple whole life policies. They don't even need to read the policy, just open the first page and look at the face amount and premium.
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The one I sold a 5 star. An agent attempted to replace it with Old American. The second was a husband/wife I sold 5 star/Oxford, agent tried to replace with Americo. They have both had a b day since I write them too.

Thanks for the info SIA, I will use that for future reference!

I remember being recruited by OA in the 80's and they were hiring state mgrs.
I was selling Med Supps and was captive looking to go Indy.
I believe the contract was like 80% and he had a briefcase FULL of FE leads. I passed.

 

[senior-advisor-indiana]

Thanks for the info SIA, I will use that for future reference!

I remember being recruited by OA in the 80's and they were hiring state mgrs.
I was selling Med Supps and was captive looking to go Indy.
I believe the contract was like 80% and he had a briefcase FULL of FE leads. I passed.

There really isn't anything wrong with any of the replacing companies. It was the fact they were replacing with no benefit to the client. The rates with americo were not that far off from what I sold them.

 

[donamese]

I can't believe how ignorant consumers can be with these simple whole life policies. They don't even need to read the policy, just open the first page and look at the face amount and premium.

It is always impressive the lack of intelligence of some clients, especially when they believe they are so smart during the sale process. The reason I encourage a letter to the DOI is that some DOIs will actually request information from all the agent's carriers. They can research between the companies to see what benefit was provided to the client. If they have a history of this, the DOI will see it. Unfortunately some DOI are lazy, others will pursue it.