Prior Policy Cancelation

[alwrightins]

Hello,
I was hoping that I could get some other independent agents best practices on how to handle canceling old policys after writing them as new business. How many days do you wait to send out the cancelation form or what do you guys do that works and creates the least amount of headaches. Thank u in advance

 

[Theinsuranceguys]

If we do not meet in person we usually send them a pre filled cancelation form thru an e-signature app and fax the notice of cancellation to the carriers that are ok with e-signatures. If the carrier does not accept e-signatures we send them the notice ready to be signed with a prepaid envelope that gets sent back to our office. We always try to take care of the cancelation process for the customer to avoid customers the small hassle and to try limit communication with their prior company who might attempt to convince the client to stay with them.

 

[alwrightins]

Thank u for ur reply Theinsuranceguy. How long do you wait intil you send it out is really wht I am after?

E.g. lets say I write new business auto and home and make effective today 10/1/14 when would you get the cancelation form out to the respective prior carrier?

 

[Herkster]

Thank u for ur reply Theinsuranceguy. How long do you wait intil you send it out is really wht I am after?

E.g. lets say I write new business auto and home and make effective today 10/1/14 when would you get the cancelation form out to the respective prior carrier?

Get it out as soon as possible with the effective date of the cancellation documented. Let's say you write a new policy today that goes into effect on 10/15, send the cancellation notice to the prior carrier with that date listed.

 

[alwrightins]

H I do appreciate the reply I got all that I have been doing pc for about 6 months but what I can never get a solid answer in is when to send it out. I was taught to wait until you knew for certain the new policy was approved by the carrier and most of the time thast two weeks out from the effective date and normally the broker recieves the policy hard copy in the mail. From what I k ow lets say the same day I issue the policy I send out the cancelation and a week later the carrier does the phone interview and finds something that they do not like and not approve the app so now you have already cancelled their last policy so your sol. I dont know anymore lol. But thats just a possibility. Everyone has their own preferred methods so I was hoping for some good insights.

 

[Theinsuranceguys]

Do you mainly write commercial? We usually send them out right away for personal likes there shouldn't be a phone interview.

 

[alwrightins]

No I am mostly writing personal but trying of coarse to get more commercial. I have a few carriers that do indeed do phone I interviews for personal line such as NYCM and Travelers. So I guess what do you do when you have a client that gets denied and you have already canceled their prior policy? For instance I had a client that got denied because of the prescription meds she took and did not tell me.

 

[Theinsuranceguys]

Most of the time you won't have any type of underwriting issues with personal lines. Just be as honest as you can on the application and let the customer know to expect a phone call to verify all info. We send out all cancelations as soon as we get them and do not usually have any issues.

 

[alwrightins]

So you recommend that when I get the app signatures after I issue a policy also have the cancelation form ready and signed the same time and sent out?

 

[BrendanFFG]

We send the apps out with the cancelations included. Get them all signed at once. Why make the client go back and sign things after you already had them go through the "signing process". Use that as a benefit to going through you as an agent, IE If this is something you want to do all I need is for you to sign the applications and along with those applications are cancelation letters for your old insurance sign those and I will take care of that as well. Sometimes it helps to have a cancelation letter along with the policy release acord form.

Something like...

Attn Cancelation Dept.

Named insured canceled his home policy please forward refund to insured ect ect ect

(Named Insureds Signature)

Sincerely Named insured...

have them sign that as well.