- 2,758
One thing I like about cold door knocking is that I've never had to worry about some other yahoo agent coming in behind me.
Does this Qualify As a Replacement or Not?
- Thread starter fredmac
- Start date
One thing I like about cold door knocking is that I've never had to worry about some other yahoo agent coming in behind me.
The policy is in-force even though the person reserves the right to return it for revision during the free look.. Don't know about FL but in TN, it would be a replacement.
There is only one reason not fill out a replacement form and that is to keep the current company from finding out about it. Either becasue you don't want the original agent back in the house or you are replacing a policy you wrote (possibly discovered you could get more commission somewhere else?) Many times when a policy lapses an agent will not even bother to call the insured. However, on a return during the Free Look period where commissions are charged back, the agent is almost always sure to call and ask why. So why take a chance on getting involved in a brawl over your possibly not complying with the law and fill out the replacement even if you don't think it is required. However, if you wrote the original business, then..... ?
There is only one reason not fill out a replacement form and that is to keep the current company from finding out about it. Either becasue you don't want the original agent back in the house or you are replacing a policy you wrote (possibly discovered you could get more commission somewhere else?) Many times when a policy lapses an agent will not even bother to call the insured. However, on a return during the Free Look period where commissions are charged back, the agent is almost always sure to call and ask why. So why take a chance on getting involved in a brawl over your possibly not complying with the law and fill out the replacement even if you don't think it is required. However, if you wrote the original business, then..... ?
- 17,234
Must be a Florida thing. In KY and Indiana it's clearly replacement.
- 20,001
That is not correct. The free look gives them a chance to cancel what they have been issued and get their money back.
If the person were to die before they free looked the policy it would pay.
- 3,247
It might be a Florida thing but I had something similar a few weeks ago. The client had 2 payments drafted and hadn't seen the policy or accepted it yet.
I called the insurer I was using for the replacement to verify that I was ok with out a replacement form and was told by them that if a policy had not been received then there is no replacement to be made.
The client then called the insurer and explained that she did not accept the policy under "the free look" period and was refunded the money.
- 20,001
I believe that you were told that but you were told incorrectly.
- 3,247
Oh well, the old "when in doubt, call the insurer" may not always work.
- 20,001
Calling the company is usually the worst advice one can get.
FEX just had an agent get all messed up by calling Oxford so they could inform the clients that what he was telling on replacements was correct.
I would agree with you.. Florida supposedly adopted the NAIC Model Regulation which defines existing insurance as:
C. " Existing policy or contract" means an individual life insurance policy or annuity contract in force, including a policy under a binding or conditional receipt or a policy or contract that is within an unconditional refund period.
The emphasis is mine but that would definitely be a policy still in the Free Look provision.
Home Offices don't always give correct answers. That is the reason companies often are fined or lose in litigation.
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