I just ran into a situation today with a client regarding a replacement. My client had a Northwestern Mutual WL, and as I was doing the review I found some carbon copies of forms signed earlier this month. There was a transfer form showing the Northwestern policy being 1035'd, but both NAIC questions on the replacement form were checked no. I called Northwestern and indeed they had received the LOA (approved by new carrier) from the replacing company to 1035 and replace her coverage.
I have known my client had this policy for years, but I've left it alone as it was serving her needs and performing well. She also had a TIA a little less than 2 years ago which would make replacing all but impossible. The agent lied about the replacement, and obviously clean sheeted the app as it was under $75k face, and with that carrier they don't order records for $74,999 or below (just app, MIB and MVR). So if something were to happen to her in the next 2 years, the new carrier would contest it and deny the claim. (TIA is a knockout question on their app).
I advised her to call the new carrier and cancel, also that they would likely try to come back out to "conserve" their sale saying she HAD to sign a cancellation letter. I told her she did not have to let them back in, and all she needed to do was call the home office to cancel as Northwestern wouldn't 1035 without their own company forms completed (which she has not done). I'm sure some of you who started your insurance career as a captive know who the replacing carrier is.
By uncovering this and helping her, her husband started pulling out statements/etc and ended up writing him a $340k FIA, and he called his brother who is his farming partner and set me up an appointment to meet with him. They realized I wasn't trying to just make money, but looking out for her best interests, and it built trust. You need to stay in touch with your clients and do reviews as other agents are constantly trying to sell them. I thought about copying the replacement forms and making a complaint to the DOI, but decided to play it by ear and if they (replacing agent/carrier) back down to let it be as its fixed now. I'd love to get agents like that out of the business, but it's a fine line that leads to more scrutiny for the rest of us who do it right.
I have known my client had this policy for years, but I've left it alone as it was serving her needs and performing well. She also had a TIA a little less than 2 years ago which would make replacing all but impossible. The agent lied about the replacement, and obviously clean sheeted the app as it was under $75k face, and with that carrier they don't order records for $74,999 or below (just app, MIB and MVR). So if something were to happen to her in the next 2 years, the new carrier would contest it and deny the claim. (TIA is a knockout question on their app).
I advised her to call the new carrier and cancel, also that they would likely try to come back out to "conserve" their sale saying she HAD to sign a cancellation letter. I told her she did not have to let them back in, and all she needed to do was call the home office to cancel as Northwestern wouldn't 1035 without their own company forms completed (which she has not done). I'm sure some of you who started your insurance career as a captive know who the replacing carrier is.
By uncovering this and helping her, her husband started pulling out statements/etc and ended up writing him a $340k FIA, and he called his brother who is his farming partner and set me up an appointment to meet with him. They realized I wasn't trying to just make money, but looking out for her best interests, and it built trust. You need to stay in touch with your clients and do reviews as other agents are constantly trying to sell them. I thought about copying the replacement forms and making a complaint to the DOI, but decided to play it by ear and if they (replacing agent/carrier) back down to let it be as its fixed now. I'd love to get agents like that out of the business, but it's a fine line that leads to more scrutiny for the rest of us who do it right.