Problems with SBLI's Bank Verification

[jdeasy]

Maybe it's non issue?

If they don't pay any contestable claims then it's a chargeback with every company.

Maybe they are just saying the quiet part out loud?

 

[DonP]

And that's the fear some IMO's who recruit heavy are saying . That more and more carriers are going to institute these chargeback rules . I remember grange had a 12 month chargeback 100% . I only wrote ones i knew would keep it . I blame much of this on the incredible rise of telesales . The persistency is much less hurting carriers .

 

[jdeasy]

And that's the fear some IMO's who recruit heavy are saying . That more and more carriers are going to institute these chargeback rules . I remember grange had a 12 month chargeback 100% . I only wrote ones i knew would keep it . I blame much of this on the incredible rise of telesales . The persistency is much less hurting carriers .

No company charges back 100% for 2 years on paid claims except SBLI.

Even the GI companies don't do that.

SBLI is also doing the living recissions now too.

I know of an agent that had 2 chargebacks with them at about 18 months saying they were cleansheeted for smoking.

But the two didn't ever smoke.

 

[vic120]

No company charges back 100% for 2 years on paid claims except SBLI.

Even the GI companies don't do that.

SBLI is also doing the living recissions now too.

I know of an agent that had 2 chargebacks with them at about 18 months saying they were cleansheeted for smoking.

But the two didn't ever smoke.

Wow I am going to stop writing them now

I did not know this about their chargebacks rules

its stupid, I am as earned with FE so I don't have to deal with chargeback but sound like with them will still have it

 

[Newby]

Wow I am going to stop writing them now

I did not know this about their chargebacks rules

its stupid, I am as earned with FE so I don't have to deal with chargeback but sound like with them will still have it

Being as earned doesn't change anything on chargebacks except for paying back the portion that was advanced if it lapses. You are just giving back the money they let you borrow (advanced) against the sale.

The big chargebacks come from rescissions. Historically those happened if there was a death in the first two years. Those were an annoyance but not all that frequent.

But today more and more carriers are monitoring their book of business to re-look at their health late in the policy. As late as the 23rd month. If they don't like what they see, they can always find a reason to rescind the policy. Many cases are unfair to the insured because they will rescind over wrong information and it's up to the insured to fight them. Most low income seniors that are broke and in failing health don't fight it and that's how the carriers get away with it.

But back to my main point of this post. Being "as earned" give you no protection from those chargebacks.

 

[theinsuranceman]

Being as earned doesn't change anything on chargebacks except for paying back the portion that was advanced if it lapses. You are just giving back the money they let you borrow (advanced) against the sale.

The big chargebacks come from rescissions. Historically those happened if there was a death in the first two years. Those were an annoyance but not all that frequent.

But today more and more carriers are monitoring their book of business to re-look at their health late in the policy. As late as the 23rd month. If they don't like what they see, they can always find a reason to rescind the policy. Many cases are unfair to the insured because they will rescind over wrong information and it's up to the insured to fight them. Most low income seniors that are broke and in failing health don't fight it and that's how the carriers get away with it.

But back to my main point of this post. Being "as earned" give you no protection from those chargebacks.

Those recissions make for interest free loans to the carriers.

 

[vic120]

Being as earned doesn't change anything on chargebacks except for paying back the portion that was advanced if it lapses. You are just giving back the money they let you borrow (advanced) against the sale.

The big chargebacks come from rescissions. Historically those happened if there was a death in the first two years. Those were an annoyance but not all that frequent.

But today more and more carriers are monitoring their book of business to re-look at their health late in the policy. As late as the 23rd month. If they don't like what they see, they can always find a reason to rescind the policy. Many cases are unfair to the insured because they will rescind over wrong information and it's up to the insured to fight them. Most low income seniors that are broke and in failing health don't fight it and that's how the carriers get away with it.

But back to my main point of this post. Being "as earned" give you no protection from those chargebacks.

Sure it does, They usually only charge back for the advance if payments stop most as I understand as long as it been in force for a couple months

Therefore with most carriers I would not have a chargeback in the event of a cancelation

However I am understanding here there needs to be 4 full months for this protection

Cica I believe is 2 months on as earned and some are not going to claw back anything if they fall off after 1st payment made
4 months is stupid

Furthermore most carriers only charge back in the case of rescinded policy and here I am understanding they will charge back in the event of a death even IF there is nothing contested

If I am understanding this correctly its a huge difrence

 

[jdeasy]

Sure it does, They usually only charge back for the advance if payments stop most as I understand as long as it been in force for a couple months

Therefore with most carriers I would not have a chargeback in the event of a cancelation

However I am understanding here there needs to be 4 full months for this protection

Cica I believe is 2 months on as earned and some are not going to claw back anything if they fall off after 1st payment made
4 months is stupid

Furthermore most carriers only charge back in the case of rescinded policy and here I am understanding they will charge back in the event of a death even IF there is nothing contested

If I am understanding this correctly its a huge difrence

Companies contest 100% of contestable policies.

If the contest results in a recission the agent is charged back. Except for GCU and CICA.

If the claim is paid no company charges back except SBLI.

 

[jdeasy]

As for as earned, I'm as earned with everyone and have been for years.

I still have the occasional chargeback. It certainly lessons your chargeback exposure. But it doesn't eliminate it.

I can't remember the last time I had a death claim not paid. That would have been the last big chargeback I had.

I haven't had one of these living recissions yet.

If I do I will just write a check to clear it.

 

[vic120]

As for as earned, I'm as earned with everyone and have been for years.

I still have the occasional chargeback. It certainly lessons your chargeback exposure. But it doesn't eliminate it.

I can't remember the last time I had a death claim not paid. That would have been the last big chargeback I had.

I haven't had one of these living recissions yet.

If I do I will just write a check to clear it.

Oh I get that, but that was what I meant, Understand well