Carrier Incentive Trips

[Rearden]

I'm most impressed by Trinity/Family Benefit. They've remained relatively unchanged in pricing and underwriting for more than a decade.

Why do you all think that is?

 

[Newby]

It's early in the game Jd . They got massive future claims exposure with incontestable policy's 2-7 yrs old . The claims will grow and grow .But now they're in trouble as not much if any new premium coming in. Also Kskj is only rescinding termed agents policy's (fex agents). Something sounded the alarm bell at Kskj

Pretty sure it's all agents that have written biz in the last 2-years. The active agents got a letter saying they expect to rescind 5% of their cases. And it's not handled like a recision of a death claim where they carefully verify with the person's medical providers that they have correct information. They just check with their new super-dooper software and trust that the info is good enough and yank the policy. It's up to the insured to prove if the info is completely wrong when they based it on wrong info. A lot of the info they are basing it on is incorrect.
I'm pretty sure the block of business they got from FexContracting is their healthiest block of business. They always told us it was. And it makes sense because they were getting first choice with all of our agents. The other agencies that I know of that we're writing them we're putting all of their healthy business elsewhere and only using KSKA for certain health cases like COPD and diabetes with complications, etc. So they weren't getting any healthy ones from those agencies. At least to my knowledge.

 

[Baseball7]

I'm most impressed by Trinity/Family Benefit. They've remained relatively unchanged in pricing and underwriting for more than a decade.

Why do you all think that is?

it's the phone interview nobody wants to do

 

[Newby]

it's the phone interview nobody wants to do

That phone interview is part of what keeps that business cleaner though. The fraudsters that are doing completely bogus business and hitting a lot of these companies are not gonna do a phone interview.

 

[DonP]

I'm most impressed by Trinity/Family Benefit. They've remained relatively unchanged in pricing and underwriting for more than a decade.

Why do you all think that is?

It's very obvious it's the phone interview . Hasn't Alvin refused to embrace eapps instant underwriting ?Much harder to lie on health questions on an E-App. It's tough for an agent to say " Mercedes answer no if you've had cancer the last 2 yrs. Also as we all know clients get nervous on phone interviews and say things they shouldn't( code they talk to much) .

 

[Baseball7]

He's likely very comfortable with the volume of business they get too. Most small fraternal for example don't want more then a mil in new business a year.

 

[DonP]

Pretty sure it's all agents that have written biz in the last 2-years. The active agents got a letter saying they expect to rescind 5% of their cases. And it's not handled like a recision of a death claim where they carefully verify with the person's medical providers that they have correct information. They just check with their new super-dooper software and trust that the info is good enough and yank the policy. It's up to the insured to prove if the info is completely wrong when they based it on wrong info. A lot of the info they are basing it on is incorrect.
I'm pretty sure the block of business they got from FexContracting is their healthiest block of business. They always told us it was. And it makes sense because they were getting first choice with all of our agents. The other agencies that I know of that we're writing them we're putting all of their healthy business elsewhere and only using KSKA for certain health cases like COPD and diabetes with complications, etc. So they weren't getting any healthy ones from those agencies. At least to my knowledge.

I got 2 agent friends with them that weren't under you . They've received nothing about any rescinding of any policy's . No question Kskj was go to for healthy people . But i truely believe in the end they didn't have the reserves to handle all the business they got. Also if I'm not mistaken fraternal aren't under the scrutiny of the state ins dept as far as reserves go.They were a small company flooded with business for yrs . Obviously the aggressive underwiting hurt them . But we'll never know exactly what happened

 

[jdeasy]

I got 2 agent friends with them that weren't under you . They've received nothing about any rescinding of any policy's . No question Kskj was go to for healthy people . But i truely believe in the end they didn't have the reserves to handle all the business they got. Also if I'm not mistaken fraternal aren't under the scrutiny of the state ins dept as far as reserves go.They were a small company flooded with business for yrs . Obviously the aggressive underwiting hurt them . But we'll never know exactly what happened

Again, things happen in this world that you don't know anything about. Maybe ask Rouse if he knows about this too? He's your goto for things that happen in the space you don't know about.

KSKJ sent notice to every active agent. They didn't send notice to every termed agent.

And fraternals have to have the same reserves as any other company.

Underwriting has nothing to do with they are doing now.

What's really hurt them is that lapses are actuarily built into the pricing. Every company will tell you off the record that the "perfect life customer" is one that lapses at 7 years.

KSKJ doesn't have the number of lapses they figured on. They were only going back 4 years on provided records. My 4 year persistency is over 90%.

But yes, we will know exactly what happened. Your spies will tell you and you will tell us.

Or maybe Rouse will beat you to it. He's a known fraternal hater. I'm sure he's digging up dirt as we speak.

 

[DonP]

Again, things happen in this world that you don't know anything about. Maybe ask Rouse if he knows about this too? He's your goto for things that happen in the space you don't know about.

KSKJ sent notice to every active agent. They didn't send notice to every termed agent.

And fraternals have to have the same reserves as any other company.

Underwriting has nothing to do with they are doing now.

What's really hurt them is that lapses are actuarily built into the pricing. Every company will tell you off the record that the "perfect life customer" is one that lapses at 7 years.

KSKJ doesn't have the number of lapses they figured on. They were only going back 4 years on provided records. My 4 year persistency is over 90%.

But yes, we will know exactly what happened. Your spies will tell you and you will tell us.

Or maybe Rouse will beat you to it. He's a known fraternal hater. I'm sure he's digging up dirt as we speak.

This has nothing to do with them being a fraternal . And I'll check with my source to confirm the letter. He wasn't just a chump agent. He wrote them diligently for 7 yrs. He made several trips but never went .

 

[jdeasy]

This has nothing to do with them being a fraternal . And I'll check with my source to confirm the letter. He wasn't just a chump agent. He wrote them diligently for 7 yrs. He made several trips but never went .

I have a copy of the letter. If your big wheel didn't get one then maybe he's not such a big wheel after all?

You are the one that said fraternals don't have to maintain the same reserves. Make up your mind!