What Constitutes a Replacement

[hardworker]

How much better off does a customer have to be with a new policy to justify a replacement? In other words how much money has to be saved from the monthly premium or how much better does the coverage have to be. What else is considered and is there a difference between a legal replacement and an ethical replacement?

 

[WinoBlues]

How much better off does a customer have to be with a new policy to justify a replacement? In other words how much money has to be saved from the monthly premium or how much better does the coverage have to be. What else is considered and is there a difference between a legal replacement and an ethical replacement?

Anything can be justified by the new agent. Also you are talking about a market that is notoriously easy to lead. It can be $3mo difference or $300 in cash value.

Ethical replacement is very subjective.

 

[WholeLife]

How much better off does a customer have to be with a new policy to justify a replacement? In other words how much money has to be saved from the monthly premium or how much better does the coverage have to be. What else is considered and is there a difference between a legal replacement and an ethical replacement?

There are no firm rules for how much premium must be saved or how much more coverage. I feel comfortable replacing any time I am putting a customer in a better position. That could mean lower premium, higher face, or even replacing a policy that had been clean sheeted, especially if it is still in the contestable period.

 

[rousemark]

How much better off does a customer have to be with a new policy to justify a replacement? In other words how much money has to be saved from the monthly premium or how much better does the coverage have to be. What else is considered and is there a difference between a legal replacement and an ethical replacement?

You don't have to justify it in Tennessee.. Just have them sign the form acknowledging that they are aware of the possible pitfalls. As far as justifying it, how about they just want the replacing agent to be their agent for whatever reason?

 

[Gooner]

There are no firm rules for how much premium must be saved or how much more coverage. I feel comfortable replacing any time I am putting a customer in a better position. That could mean lower premium, higher face, or even replacing a policy that had been clean sheeted, especially if it is still in the contestable period.

What if they were 20 months in and you could save them $1.20? OR what if they had $250 in CV and you were $.20 more...would you replace then?

 

[rousemark]

What if they were 20 months in and you could save them $1.20? OR what if they had $250 in CV and you were $.20 more...would you replace then?

You didn't ask the all important question. "Do you need the commission"? For a lot of agents that is the only criteria for replacement.

 

[WholeLife]

What if they were 20 months in and you could save them $1.20? OR what if they had $250 in CV and you were $.20 more...would you replace then?

I try to always put the client's interest first. I explain the positives and negatives to them in a straight forward manner. Ultimately, the decision is theirs.

If you run a highly ethical practice, commission will take care of itself.

 

[vic120]

I try to always put the client's interest first. I explain the positives and negatives to them in a straight forward manner. Ultimately, the decision is theirs.

If you run a highly ethical practice, commission will take care of itself.

I found this true with my medicare business and I now that I am adding FE I will do the same. I've been in sales much of my life, But Being independent in Ins is truly satisfying and I love the clear conscience without the pressure from management.

 

[insuranceconceptscindy]

I try to always put the client's interest first. I explain the positives and negatives to them in a straight forward manner. Ultimately, the decision is theirs.

If you run a highly ethical practice, commission will take care of itself.

If everyone followed this, replacement wouldn't be subjective. This is the ONLY way to run your practice. Also, I like to sleep at night. Not lying, cheating and stealing, keeps the nightmares away. And it's a lot less work.

 

[GreenSky]

If everyone followed this, replacement wouldn't be subjective. This is the ONLY way to run your practice. Also, I like to sleep at night. Not lying, cheating and stealing, keeps the nightmares away. And it's a lot less work.

Have you left the insurance industry?

Rick