Do You Leave a Conditional Receipt if Client Only Gives You Void Check and Post Dates Issue Date 30

So I've seen no definitive answer?Do we leave a conditional receipt if we only get a voided check and we post date the issue date 30 days out?In theory no payment has been made to bind the coverage.So whats the answer?

I think the best answer will come from the horses mouth. You should contact the carrier you are writing for and pose the question.
 
So I've seen no definitive answer?Do we leave a conditional receipt if we only get a voided check and we post date the issue date 30 days out?In theory no payment has been made to bind the coverage.So whats the answer?

5 Star is the only company I give out a receipt with a voided check. I am 100% certain this is ok.

I never ever give a receipt with any other company unless I collect 1st months payment.
 
The OP is referencing a conversation I had with him.

I had a client whom I wrote a policy for on 05/28/14. The client gave a void check and signed a PAC form. The initial Draft was set for 06/03/14. The client called the next day wanting to cancel because he said he and his family were moving and he couldn't pay the premium and the movers.

I told him not a problem that I would call the carrier, Americo, and have the Draft changed to 07/03/14.

I received a call 07/02/14 from the clients daughter saying her father passed away that night from pneumonia.

I notified Americo and they stopped the Draft for 07/03/14. I asked about whether Americo would pay the claim if there was nothing in the investigation that came back negative since they had not received a payment.

Americo said that since a PAC form was on file and the policy was APPROVED before the client passed away they would honor the claim if no fraud was found.

I told the daughter to get on her father's Dr's case and expedite the medical records to Americo.

They just finished the investigation. He was a smoker and it was marked on the application.

He caught pneumonia and died. No fraud found. Paid the claim according to Americo 08/11/14.

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I never said I post dated an application.

Can you imagine the outcome if Americo did not pay? The family why is my dad not covered he was supposed to be drafted on x date but you the agent pushed back the draft date my father never authorized that.

Just a question did you get anything in writing from the client or record the call?

And for the record I am not saying you did anything everyone of us has done in the past you just came closer than most in possibly getting bit.
 
What I do is give the receipt with a "0" in the space for the premium amount. In a blank area I write "1st draft date to be xx/xx/xxxx - Coverage starts on this date." It makes them feel good to get something. Some companies don't want you to give one, though.
 
What I do is give the receipt with a "0" in the space for the premium amount. In a blank area I write "1st draft date to be xx/xx/xxxx - Coverage starts on this date." It makes them feel good to get something. Some companies don't want you to give one, though.

What companies have told you that? Every company that I have asked, have told me that a signed bank auth is just as good as a check and I leave a conditional receipt w/ EVERY sale. That makes sense to me as they are both really just an authorization to deduct their checking/savings account for said amount.
 
Kuhn please explain to me how theres coverage when you stipulate a policy effective date 15-30 days out and if they die before the policy effective date that was stipulated on the app?Even if you consider the void check a payment you're still requesting a date in the future for coverage to begin.why is the company liable to pay if one died before a specified policy date. Now if you put the policy date as when it issued that's different.
 
What companies have told you that? Every company that I have asked, have told me that a signed bank auth is just as good as a check and I leave a conditional receipt w/ EVERY sale. That makes sense to me as they are both really just an authorization to deduct their checking/savings account for said amount.

SLAC is the one that comes to mind that has it listed in their app guide.
 
sorry i meant the issue date was 30 days out. So newby are you saying this isn't standard with most co's?So if we take a void check or fill out the etf form are we supposed to give a conditional receipt? It sounds like very few do this.


No. Most do not cover until payment is drafted.
 
Americo's conditional receipt says specifically.

"Received from_____ on ____, $___ by check, preauthorized order for withdrawal, or salary reduction plan. "

Therefore I fill in the agreed upon amount and leave the conditional receipt.
 
What companies have told you that? Every company that I have asked, have told me that a signed bank auth is just as good as a check and I leave a conditional receipt w/ EVERY sale. That makes sense to me as they are both really just an authorization to deduct their checking/savings account for said amount.

How soon is the 1st draft? If it's immediate then great if not and not 5Star I stray away

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How soon is the 1st draft? If it's immediate then great if not and not 5Star I stray away

I tell anyone not getting 5 Star they are not covered until the date of their first payment. No one ever expects anything different. I am afraid some agents may be skating on thin ice. The odds are slim you would ever get called on it but I would not chance it.
 
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