Writing Business That Sticks for More Than a Year

[ABC]

The way you keep clients is by providing them with service.
Explain the plan to the client. Go through the plan without boring your client. Get the carrier that best fit their needs. If you are just selling one carrier it can be tough.

Retention has a lot to do with age. People under 25 will drop a plan in a heart beat.
Industry plays a factor too. If you are writing all servers from restaurants and bars they are also quick to drop a plan.

Another area to watch for is selling real rich plans to people that really can't afford a second mortgage. This happens a lot when you get someone that just left a big company to be a consultant and what not. I.T. guys fall into this trap.

Just keep selling and servicing.

 

[ins.dave]

Also, a new 2 year review period starts every time they switch.

Aka. 2 year period of contestability.

 

[somarco]

Unfortunately, I have talked to people who got caught up in this. Change every year to save a few bucks. Drop Rx coverage to save money (often unintentionally).

Then they get sick.

The carrier challenges the claim, investigates, then denies coverage.

Life happens.

 

[TristanTLC]

Now before I stick my foot in my mouth, let me just preface by saying I'm not a health buff so I'm going to phrase this in the form of a question instead of a comment.

I was under the impression that on the health side, there is no such thing as a 2 year contestibility period. Health Insurance companies do review and rescensions of policies all the time, even after the 2 year period is over. So if they can rescend a policy and deny coverage after 2 years, then am I correct to understand that health insurance does not have a contestible period?

 

[somarco]

Health insurance contestability periods will vary by state and carrier, but two years is generally accepted. In the case of fraud or material misrepresentation they may try to challenge a policy more than 2 yrs old. Given the media and political climate they would be better advised to not pursue claims on policies over 2 yrs old.

Many carriers will investigate even routine claims that occur during the first 12 months the policy is in effect.