$10,000 Budget Vs $500 Budget

[rousemark]

I would, unless I'm missing something they wouldn't legally be able to cancel my renewals. Again, this hypothetical situation would rarely if ever occur. If I'm not writing my client at one of the best level rates to begin with I'm doing a disservice.

I suppose that I would consider replacing someone level if they truly stopped smoking and now qualify for a NS rate, but again I don't see that happening very often.

Replacing a GI, graded or modified is most common.

Most companies will reduce the premium on an existing policy to a non smoking rate upon proof the person has not smoked for a period of time so there is no real reason to replace for that reason.

 

[springbokhouston]

Most companies will reduce the premium on an existing policy to a non smoking rate upon proof the person has no smoked for a period of time so ther eis no real reason to replae for that reason.

Of course, very good point.

 

[jdeasy]

Most companies will reduce the premium on an existing policy to a non smoking rate upon proof the person has not smoked for a period of time so there is no real reason to replace for that reason.

I wouldn't say most will. Many won't. Some that will require a paramed. Some, like Trans, require the person to be tobacco free for 2 years before they will reduce the premium. Even though their app says 1 year if you were writing them as new business.

 

[NSRH]

Since we are talking hypotheticals here:

If a cheap company like KSKJ just got approval in your state, would you go back to all your policy owners you wrote in the past year or two and replace them all?

Now, thats a tough question to answer!

 

[jdeasy]

Lets say you had a renewal base of $1000 a month with a carrier. Would you take a chance of replacing that company and risk losing your renewals? I can't see a big carrier like Trans matching replacement forms with agents names but it wouldn't surprise me if small carriers do.

You would only lose that if termed for cause. Have you ever heard of a company that would term for cause if you replaced them?

Have you ever seen that in a contract?

If so, then can and probably would.

Supposedly CL's contract spells it out that they will term an agent that replaces CL business. I don't know if it's for cause. But my understanding is that if your book falls below 20 policies they keep your renewals anyway.

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Since we are talking hypotheticals here:

If a cheap company like KSKJ just got approval in your state, would you go back to all your policy owners you wrote in the past year or two and replace them all?

Now, thats a tough question to answer!

What's tough about it? No, you can't do that. What state doesn't prohibit churning?

 

[rousemark]

You would only lose that if termed for cause. Have you ever heard of a company that would term for cause if you replaced them?

Have you ever seen that in a contract?

If so, then can and probably would.

Supposedly CL's contract spells it out that they will term an agent that replaces CL business. I don't know if it's for cause. But my understanding is that if your book falls below 20 policies they keep your renewals anyway.

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What's tough about it? No, you can't do that. What state doesn't prohibit churning?

You have also stated in the past that KSKJ and Trinity have a 0 tolerance for replacement and will terminate if you replace any of their business no matter who wrote it. In that thread you did state you doubted it would be for cause. Perhaps you could ask the companies" opinion?

The 20 polices with Columbian applies only to the FE coverage. If you write the other plans, you could have 100 non FE polices in force and 19 FE polices in force and still loose the commissions on the FE. Once I saw that, I quit selling their FE. At my age, little things like that are important.

The only company I personally know of that terminated an agent for cause for replacement while contracted was years ago with Pioneer Life. Almost all contracts I have seen call for the termination of commissions for replacement AFTER termination.

Most companies have a catch all in their "for cause" clause that could be taken to mean almost anything. My UHL contract doesn't even define what "for cause" is. Settlers specifically says that you shall not replace any their policies or induce any of their agents to terminate their contract or you can be terminated for cause.

 

[jdeasy]

You have also stated in the past that KSKJ and Trinity have a 0 tolerance for replacement and will terminate if you replace any of their business no matter who wrote it. In that thread you did state you doubted it would be for cause. Perhaps you could ask the companies" opinion?

The 20 polices with Columbian applies only to the FE coverage. If you write the other plans, you could have 10 non FE polices in force and 19 FE polices in force and still loose the commissions on the FE. Once I saw that, I quit selling their FE. At my age, little things like that are important.

The only company I personally know of that terminated an agent for cause for replacement while contracted was years ago with Pioneer Life. Almost all contracts I have seen call for the termination of commissions for replacement AFTER termination.

Most companies have a catch all in their "for cause" clause that could be taken to mean almost anything. My UHL contract doesn't even define what "for cause" is. Settlers specifically says that you shall not replace any their policies or induce any of their agents to terminate their contract or you can be terminated for cause.

Trinity does say that but I have replaced Trinity and not been termed. I know of other agents that have replaced Trinity and not been termed. KSKJ also says they have a zero tolerance but I replaced a KSKJ and they didn't term me. I did call them and inform them of the replacement and why. They said to do what's in the best interest of the client.

Settlers is the only company I ever had a problem with on replacements.

I had something like a $14-15/mo policy on an 11 year old with them. The father, {owner}, died. We tried for almost 2 months to get the ownership changed to the mother. Couldn't get it done.

So I wrote the child elsewhere. Settlers called me and threatened termination over it. I told them to go ahead, I didn't need that kind of trouble anyway.

Then they backed off and said I misunderstood, they weren't threatening at all. Then they promised to work on getting that ownership changed. Never happened. I was finally termed by them a couple years later for non production.

 

[goillini52]

Trinity does say that but I have replaced Trinity and not been termed. I know of other agents that have replaced Trinity and not been termed. KSKJ also says they have a zero tolerance but I replaced a KSKJ and they didn't term me. I did call them and inform them of the replacement and why. They said to do what's in the best interest of the client.

Settlers is the only company I ever had a problem with on replacements.

I had something like a $14-15/mo policy on an 11 year old with them. The father, {owner}, died. We tried for almost 2 months to get the ownership changed to the mother. Couldn't get it done.

So I wrote the child elsewhere. Settlers called me and threatened termination over it. I told them to go ahead, I didn't need that kind of trouble anyway.

Then they backed off and said I misunderstood, they weren't threatening at all. Then they promised to work on getting that ownership changed. Never happened. I was finally termed by them a couple years later for non production.

I'll bet you're kickin' your self in the ass now...you can't go to Steve's Road Show.

 

[Prtzl]

Yes, I've posted this before because it breaks down numbers for a plan of attack, for an agent with under 3K to invest into his/her business!
How to turn $580 into $70,000 to $100,000 Annually - YouTube

This is Ironic -One of my very first posts on this forum was this very question - how much to get started? You responded by saying, "You're going into business-you'll need at least 5-10K..."

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My point was that I created that lead that I sold. I called names out of the phone book. Now I call names on targeted data list from ListShack. How can a company claim that that's theirs?

My 1st loyalty is to my client. They were my client when I place them with a company, and if I have a chance to put my client in a better situation, then that's what I'll do.

Let's say you have to write somebody a Graded or Modified policy, and after they've had that policy a while they can qualify for Level with another company at a lower rate. Will you switch them? I sure will.

This is my 35th year selling insurance, and I've never been on a salary...straight commissions all the way.

You sell FE without DM cards/leads? What else do you sell?

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What happened to the original question being answered -- now that most agree that non competes aren't a good way to go..

$500 to start.. ?

I was reading Fex intro and one of the first "do not do" when getting into FE is coming in "broke"...

But there have to be those who came in broke and made it happen..

 

[goillini52]

You sell FE without DM cards/leads? What else do you sell?

I lead with Med Supps and cross sell FE. Sometimes they aren't interested in Med Supps and I pivot to FE and they're interested in that, but mostly cross sell it off the Med Supps.