Charging a Business Owner for Switching Before Renewal Date??

[djs]

Yeah, there can be some rules about 'buying' business.
Unless you meant something like:
Current premium is: $10K
Your premium is: $8K

This savings is enough to pay any short rate fee and therefore its a good deal anyway.

I assume you are not really discounting the premium an extra amount to cover the shortrate?????

Dan

 

[mmaedelins]

Yeah, there can be some rules about 'buying' business.
Unless you meant something like:
Current premium is: $10K
Your premium is: $8K

This savings is enough to pay any short rate fee and therefore its a good deal anyway.

I assume you are not really discounting the premium an extra amount to cover the shortrate?????

Dan

Exactly! We are already saving him quite a bit which will more than cover the short rate cost.

It didn't occur to me that he may think I didn't give him the full savings from the start but I can certainly see how he might think that and get upset. Fortunately, it didn't seem to bother this guy at all but I'll keep that in mind for the future. The boss over here told me to offer that to him to close the sale.

Any suggestions on how to handle the short rate question when it comes up in the future without offering to take care of that cost for the business owner?

 

[iiinycboi]

i usually do what Dan says. I give them a break down of how much they get returned and how much my premium is. It usually covers the short rate and they get a few months more coverage.

 

[Guest]

Exactly! We are already saving him quite a bit which will more than cover the short rate cost.

It didn't occur to me that he may think I didn't give him the full savings from the start but I can certainly see how he might think that and get upset. Fortunately, it didn't seem to bother this guy at all but I'll keep that in mind for the future. The boss over here told me to offer that to him to close the sale.

Any suggestions on how to handle the short rate question when it comes up in the future without offering to take care of that cost for the business owner?

YOU HAVE to be careful what you say, The Department of Insurance is out there checkin on things you say to clients, they will pose as a client, you could easily earn yourself a $10-15,000 fine for simply saying something like that.

 

[mmaedelins]

Understood....loud and clear!