How many times I've seen it, I can not count.
When I am going to quote someone I do field underwriting, I ask questions and try to give the best estimate I can give of the expected premium. I talk with the underwriters to get the best estimate.
Since Feb 2008 I have been working with a guy trying to fulfil his insurance needs. I've given him many different quotes, needs analysis and explained the different insurance plans to him. He is 51, 250 pounds and 5'6" tall. He has a daughter with Downs Syndrome. I've talked to various company underwriters to find his rating and her rating. Some companies give a total decline for Downs and other rate it.
At the beginning I explained to the guy that just because someone shows you a quote, it doesn't mean that is the premium you will get. What I have been showing him is the premium that the underwriters said he is most likely to get.
Yesterday I stop by to see him and he informs me he signed applications with someone else. Another agent is writing WL on him, his 49 year old wife, his son and his daughter. Four individual policies. He said the agent told him the plans won't end until after 100 and the premium for all four polices will total $240 a month. I was shocked. Someone waltzes in and clips this guy for 12% of his take home pay.
I asked the name of the insurance company. He gave it to me and it is one that I can get quotes from. Today I called that company and asked underwriting where I should rate these people. They said what all the other companies said, so I quoted with those ratings. Well the premium total is not $240 but is $528 a month and that is before final underwriting.
The only way the other agent could come close to the $240 a month was to quote Best preferred on all parties, the over weight, high blood pressure man and the child with Downs Syndrome.
How many freakin times have I run into agents that do this stuff. When I sold stocks there was the Know Your Client Rule. I think there should be such a rule when it comes to quoting. You know darn well that a child with Downs Syndrome isn't going to get a best preferred rate. You know darn well a 51 year old over weight, high blood pressure man isn't going to get best preferred. It is no different than a department store doing the bait and switch on you.
So I went by today showing the guy what my rates for the plan would be. The same plan the other agent was showing but telling him again about underwriting, weight, Downs Syndrome, etc. I asked if the other agent left an illustration. He isn't sure. He said that the other agent was there for four hours at night and did a lot of calculations using pen and paper. He is going to see if an illustration was left behind and if so, will show it to me on Monday.
Then there is my P&C client. The wife gave a try with Primerica but it didn't work out. So outside of the cram course to pass the test she didn't have a lot of time to learn insurance. Her husband was invited to a retirement seminar. The husband had 401K money to roll over. After the seminar the wife, the ex-Primerica person said, I don't want him rolling over the 401K into an annuity. The woman giving the seminar said, no it isn't an annuity. That was last November and the husband did meet with the woman and completed the roll over. Just recently the wife was looking at what her husband rolled the money into and indeed it was an FIA. My P&C clients wife is PO'd. She knows she point blank asked the woman if it was an annuity and the woman said no it is not an annuity.
This crap really gets to me and I am tempted to go undercover and get their licenses yanked and put these agents back where they came from.
When I am going to quote someone I do field underwriting, I ask questions and try to give the best estimate I can give of the expected premium. I talk with the underwriters to get the best estimate.
Since Feb 2008 I have been working with a guy trying to fulfil his insurance needs. I've given him many different quotes, needs analysis and explained the different insurance plans to him. He is 51, 250 pounds and 5'6" tall. He has a daughter with Downs Syndrome. I've talked to various company underwriters to find his rating and her rating. Some companies give a total decline for Downs and other rate it.
At the beginning I explained to the guy that just because someone shows you a quote, it doesn't mean that is the premium you will get. What I have been showing him is the premium that the underwriters said he is most likely to get.
Yesterday I stop by to see him and he informs me he signed applications with someone else. Another agent is writing WL on him, his 49 year old wife, his son and his daughter. Four individual policies. He said the agent told him the plans won't end until after 100 and the premium for all four polices will total $240 a month. I was shocked. Someone waltzes in and clips this guy for 12% of his take home pay.
I asked the name of the insurance company. He gave it to me and it is one that I can get quotes from. Today I called that company and asked underwriting where I should rate these people. They said what all the other companies said, so I quoted with those ratings. Well the premium total is not $240 but is $528 a month and that is before final underwriting.
The only way the other agent could come close to the $240 a month was to quote Best preferred on all parties, the over weight, high blood pressure man and the child with Downs Syndrome.
How many freakin times have I run into agents that do this stuff. When I sold stocks there was the Know Your Client Rule. I think there should be such a rule when it comes to quoting. You know darn well that a child with Downs Syndrome isn't going to get a best preferred rate. You know darn well a 51 year old over weight, high blood pressure man isn't going to get best preferred. It is no different than a department store doing the bait and switch on you.
So I went by today showing the guy what my rates for the plan would be. The same plan the other agent was showing but telling him again about underwriting, weight, Downs Syndrome, etc. I asked if the other agent left an illustration. He isn't sure. He said that the other agent was there for four hours at night and did a lot of calculations using pen and paper. He is going to see if an illustration was left behind and if so, will show it to me on Monday.
Then there is my P&C client. The wife gave a try with Primerica but it didn't work out. So outside of the cram course to pass the test she didn't have a lot of time to learn insurance. Her husband was invited to a retirement seminar. The husband had 401K money to roll over. After the seminar the wife, the ex-Primerica person said, I don't want him rolling over the 401K into an annuity. The woman giving the seminar said, no it isn't an annuity. That was last November and the husband did meet with the woman and completed the roll over. Just recently the wife was looking at what her husband rolled the money into and indeed it was an FIA. My P&C clients wife is PO'd. She knows she point blank asked the woman if it was an annuity and the woman said no it is not an annuity.
This crap really gets to me and I am tempted to go undercover and get their licenses yanked and put these agents back where they came from.
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