Can We do This....?

Jun 4, 2008

  1. Jerry Tibbs
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    Jerry Tibbs Expert

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    From what i understand...landing a group accont is a pain-in-the-ass.

    I was talking to an GA about selling Group Policies....and he said that i can loose a group account very easily by someone changing the agent of record....

    SOLUTION: Is it possible to have a contract signed that would obligate the insured to stay with the Agent for a specified time period....and/or pay a fee to get released from the agreement?

    This way the agent could know that he/she wouldn't loose the account.
     
  2. Mr. Bill
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    Mr. Bill Guru

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    I believe each carrier has a different approach. Some will allow the brokerofrecord letter to go through, so to speak, and the responsibility starts there, but the commissions will go to the previous broker for the full year. Check with the carriers.
     
  3. Jerry Tibbs
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    Forgive me...i am new.

    What is "broker of Record?"

    What effect does it have?
     
  4. Mr. Bill
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    The broker of record is the agent who receives the commission (whether a corporation or an individual).
     
  5. retread
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    Google "Agent of Record" or "Broker of Record".

    You can get copies of AOR or BOR requests (Acord) forms off the 'net.
     
    retread, Jun 4, 2008
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  6. Jerry Tibbs
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    So what are you saying

    "if you are the broker of record"....then employers can't change you at any time?'

    If you are the Broker of record...you are locked in for a Period of time?"


    JT
     
  7. Bob_The_Insurance_Guy
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    Bob_The_Insurance_Guy Guru

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    Most companies (and the exception here is the Evil Empire) will give the agent of record right of first refusal. There are occassions when the company goes direct, and the agent of record is just the Customer Service agent who signed them up.
     
  8. Mr. Bill
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    It depends on the carrier, which is why I said check with the carrier.

    You may be allowed to change the broker of record to yourself, and be responsible for the group while the commissions go to the previous agent until recertification.
     
  9. djs
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    djs Super Moderator Moderator

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    Let me correct something else. Landing a small group account is pretty easy, but might take longer than an IFP account. This probably varies from state to state, but in California, small group is very easy to write. Unfortunately, you need lots of small groups to pay the bills, since commissions tend to be lower than on IFP policies. Nice thing is, retention is usually higher.

    Landing a large group is a PIA, but can be financially lucrative.

    Most group plans are more feature rich than a similar IFP plan, so people tend to gravitate to them, though they are slightly more expensive (some states, considerably more expensive).

    Agent of record changes are not easy to get. They do happen, but usually only if the current agent isn't around anymore. With most carriers, the current agent has to sign and agree to the change (unless the account is direct with the carrier), so you are in control.

    Again, check with the carrier. Some don't even accept changes, most discourage them, some will do them, but it's not as simple a process as it sounds.

    It doesn't hurt to ask someone to change to you. Even if they sign the form, it doesn't mean it will happen. You will pick up a few accounts this way.

    Dan
     
    djs, Jun 5, 2008
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  10. Dave020
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    Dave020 Super Moderator Moderator

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    The most the carriers offer is either a 6 or 12-month lock in before they will accept a BOR. Then, once the period has passed, they are only bound to notify you by letter that a BOR has been submitted on X Group (never disclosing the identity of the new broker) and that you might want to contact the group before the BOR goes into effect. Old agent does not have to sign nor agree to anything. The BOR goes into effect unless the group rescinds the request before the transfer date.

    Anthem BC processes over 1000 BOR a month just in CA. I know, I have talked to them about it and they told me it is one of the busiest areas in small group.
     
    Last edited: Jun 5, 2008
    Dave020, Jun 5, 2008
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