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The sale of annuities to seniors is a very hot topic for a lot of states and if the insurance companies themselves don't employ checks and balances then soon the government will. And no insurance company wants government regulations tieing up the sales of their products.
In any industry high commissions are going to attracts unscrupulous agents. I think it's the duty of the insurance company to scan over the application of a $100,000 20 year annuity and the applicant is 78. I don't think that should be mass-processed along with the other apps. Someone has a responsiblity to make sure that client knows that it matures when he's 98 years old.
Also, so you know I'm not biased just on senior products, a general agent also has a responsiblity to catch an agent selling far too many limited health insurance plans. Do I have a responsiblity to stop an agent selling a lot of Copay Savers? Right Starts? Yes...I do. What's my responsiblity if I find out an agent took a client off a solid plan and put them on a limited plan just to get a commission? Well...call the client and explain what's going on - possibly leading to me pulling the app out of underwriting and warning the agents that all future applications will be checked by calling the client. Does that mean a limited plan can never be sold? Of couse not. I'm talking about a pattern.
Insurance companies in the past have said "Not our job." Generals agents have said "Not our job." Well...if that's the case the government might say "Ok, then it's our job."
In any industry high commissions are going to attracts unscrupulous agents. I think it's the duty of the insurance company to scan over the application of a $100,000 20 year annuity and the applicant is 78. I don't think that should be mass-processed along with the other apps. Someone has a responsiblity to make sure that client knows that it matures when he's 98 years old.
Also, so you know I'm not biased just on senior products, a general agent also has a responsiblity to catch an agent selling far too many limited health insurance plans. Do I have a responsiblity to stop an agent selling a lot of Copay Savers? Right Starts? Yes...I do. What's my responsiblity if I find out an agent took a client off a solid plan and put them on a limited plan just to get a commission? Well...call the client and explain what's going on - possibly leading to me pulling the app out of underwriting and warning the agents that all future applications will be checked by calling the client. Does that mean a limited plan can never be sold? Of couse not. I'm talking about a pattern.
Insurance companies in the past have said "Not our job." Generals agents have said "Not our job." Well...if that's the case the government might say "Ok, then it's our job."
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