Is this a Replacement?

[Chicken Coop]

Today I was referred to a couple that wish to buy a new term policy

They terminated two term policies they had with another company back in July, nearly 3 months ago.

On the replacement form, do I need to list the terminated policies from the other company as being replaced with the new applications?

 

[VolAgent]

I wouldn't, it has been more than 30 days.

I would find out why they let the previous policy go. Good chance your policy may be lapsing in a few months too.

 

[Chicken Coop]

I wouldn't, it has been more than 30 days.

I would find out why they let the previous policy go. Good chance your policy may be lapsing in a few months too.

The policies they terminated were 30 year ROP term.

They decided they just wanted plain old term without the ROP

 

[LGilmore]

Going to depend on your state dept of insurance. Mine says up to 6 months after as they can reinstate till that point, so replacement forms are needed. When in doubt, do it. The worse thing that can happen is your company doesn't need the form so you file it.

 

[VolAgent]

Going to depend on your state dept of insurance. Mine says up to 6 months after as they can reinstate till that point, so replacement forms are needed. When in doubt, do it. The worse thing that can happen is your company doesn't need the form so you file it.

That is good advice there. I have yet to have a carrier complain about too much paperwork, only not enough.

 

[Norton]

Today I was referred to a couple that wish to buy a new term policy

They terminated two term policies they had with another company back in July, nearly 3 months ago.

On the replacement form, do I need to list the terminated policies from the other company as being replaced with the new applications?

I had a client who bought an Americo policy in January from someone else, who never delivered it. He cancelled in March since he was unhappy with the premiums and only got a 5-yr guarantee on the rate... plus lousy customer service from the agent.
I met him in May, offered to re-write at better terms with the same carrier, and Americo wanted me to fill out a replacement form. I found a similar MoO policy with a fully guaranteed rate and acceptable premiums, and mentioned his former policy and what happened when I filled in the MoO app. No replacement form needed, and the explanation in the comments section was sufficient. Issued. Paid.

 

[VolAgent]

I had a client who bought an Americo policy in January from someone else, who never delivered it. He cancelled in March since he was unhappy with the premiums and only got a 5-yr guarantee on the rate... plus lousy customer service from the agent.
I met him in May, offered to re-write at better terms with the same carrier, and Americo wanted me to fill out a replacement form. I found a similar MoO policy with a fully guaranteed rate and acceptable premiums, and mentioned his former policy and what happened when I filled in the MoO app. No replacement form needed, and the explanation in the comments section was sufficient. Issued. Paid.

I fail to get the point of this?

Get a signature on the replacement form and move on. Most states it is the NAIC form, list the carrier, the amount and you're done.

 

[jerry176]

It takes 30 seconds to fill out the replacement forms, and write no replacement, have customer sign it, and fax it in with your app.

Its called cover your rear...

 

[Norwayguy]

It takes 30 seconds to fill out the replacement forms, and write no replacement, have customer sign it, and fax it in with your app.

Its called cover your rear...

So true. Some carriers want all policies in force within the previous 12 months and want replacement forms for any no longer in force. For me I look at it as a CYA as you fill in a reason for the replacement and the client signs the form.

 

[jdeasy]

So true. Some carriers want all policies in force within the previous 12 months and want replacement forms for any no longer in force. For me I look at it as a CYA as you fill in a reason for the replacement and the client signs the form.

True, but what if you are in a state like Ky where some companies do not allow replacements?

Would this be a replacement then? I think I would just fill out the form and write, "no replacement involved" and be done with it.