Oxford Life is Giving Out 120% Street Level!

[Newby]

If he keeps those handwritten notes from the agent he will definitely be good after 1 year.

You don't have anything better for him?

 

[theinsuranceman]

He has a graded policy with Monumental. That's why he was getting the LH policy. It appears that none of his meds would make the LH policy modified.

That's what I'm struggling with. I don't want to knock the applicant out of getting better coverage, but it is the law in Ky to file the replacement form. He has only had the Monumental one year, so there would still be a year of contestability left on any new policy. A full two years on the LH policy because they don't do replacements.

I don't know what the law would do in this case if he get the LH policy, cancels his Monumental since he intends to replace and then were to die after one year. Legally he would be out of contestability. Would the law force LH to live with the consequences? I think they would since it was their agent acting on their behalf that knowingly wrote the application.

If the proposed insured's meds AND health questions gave him immediate coverage with LH, not modified, the proposed insured's family would not be in jeopardy of a claim payout, as long as the proposed insured was truthful and the LH agent did not omit any pertinent info on the app, even if the proposed insured died a month later.

 

[jdeasy]

If he keeps those handwritten notes from the agent he will definitely be good after 1 year.

You don't have anything better for him?

No, he's 43. It's in your neck of the woods, The parents are in Henderson, the guy lives in Spottsville.

I met with the parents from a lead card and I couldn't really improve their situation. She had a Georgia Life that was paid up and a Bankers that she had for many years. He had the MoO GI for two years and a very old bankers. Neither are in good enough health to get a new policy.

That's when they told me about the son just getting thei new policy from LH. I was reccommending Monumental and he could get $6000 more coverage for $1/mo less than the LH. I was on the phone with him to get him to come up to mom's house to do an app. That's when he told me about the Monumental and said the policy was there. He applied last year for immedaite with Monumental, {it wasn't with you}, and it had a n amendment in the package changing it to graded, which he accepted.

That's why I couldn't do the Monumental. He certainly couldn't get RNA's fully underwritten because of cancer 5 years ago.

I don't have any LH stuff anymore, but the guy had left the LH modified med list with the applicant. None of his meds were on the list.

The mom did say that LH had called yesterday and asked a bunch of questions.

The big deal here is that the guy is knowingly doing a replacement and didn't fill out the form. I know the agent and so do you. He is big on Humana. I didn't know he was contracted with LH until today. I believe he has an office in Henderson. I know he has one in Central City.

He is not a novice. This is not an honest mistake.
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If the proposed insured's meds AND health questions gave him immediate coverage with LH, not modified, the proposed insured's family would not be in jeopardy of a claim payout, as long as the proposed insured was truthful and the LH agent did not omit any pertinent info on the app, even if the proposed insured died a month later.

Every funeral home in this area would disagree with you on that. But, that is a different issue.
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If the proposed insured's meds AND health questions gave him immediate coverage with LH, not modified, the proposed insured's family would not be in jeopardy of a claim payout, as long as the proposed insured was truthful and the LH agent did not omit any pertinent info on the app, even if the proposed insured died a month later.

Every funeral home in this area would disagree with you on that. But, that is a different issue.

 

[donamese]

Are you an IMO?


Most Life Insurance Companies really push an agent to go to an IMO. They want someone to be on the hook for the debit balance and the IMO has to co sign for the debit. Most of them wont offer what most of the IMOs are giving out.

Some IMOs had agents on a lower level than what the street level is at now 120%. Most companies keep their street level low, so that the IMOs can judge the agent.

Oxford is not IMO friendly. I work with a lot of IMO's, besides being one of them.

I understand why insurance companies refer independent producers to IMOs to protect against debit balances. However, I know there are a lot of IMOs who take huge overwrites while providing no training, leads, or promotion.

What I was questioning was how this change was bad for an IMO? The original street level was 105%, that agent is now 120%. So if you had a person at 80% commission they are now at 95%...your overwrite did not change since your commission went up 15% as well.

I guess it is all perspective though, since I am an independent producer then it is nice to get the street level or increased commission based on production. I remember contacting Columbian who referred me out to an IMO who said my commission would be 80% when I know their street is 105%. That IMO offered no leads or training, 35% minimal in overwrite to him for nothing (probably more like 55% overwrite). I am sure he would be pissed if Columbian gave a 15% bump to the writing agent rather than giving it to him. Lord knows he deserves a 50%-70% overwrite to potentially be responsible for my debit balance!

Before you get all defensive, I know there are good IMOs that actually provide training and leads with their overwrite money, but there are a lot that only use it to recruit more agents to feed their greed.

 

[Mark]

The problem would not be with the IMOs existing agents, since they both got the increase, I would guess.

But when an agent can go to the company and get the same deal the IMO is giving out, then you have a problem.

Most companies don't do it this way.

 

[donamese]

Makes sense, but in theory an IMO gives less commission than street level because they are suppose to be providing something in return for the reduced commission whether it be leads or training. I thought that was the basis for a producer to go under an IMO.

I guess maybe I just haven't been with a company where they offered 80% as a street level direct producer but the IMO was willing to give me 105% as their street.

 

[amerchant7]

Bump- what are the renewals for Oxford?