Citizens (CICA)

[rousemark]

Com'on man!!

When did a company ever need a basis? Many will just deny a claim and dare the family to sue. Most will not. I'm in my 20th year of being an independent agent and worked in some kind of insurance services for 10 years prior to that.

Every case I know of a claim being denied and then challenged in has been settled before getting to court. Usually almost at the courthouse steps. The problem is I can count on one hand and have fingers left the ones that have been challenged.

None of mine. I've had two that I wish the family had fought. I have one now that the lady says she is going to fight. I don't think she has a strong a case as the 2 I wish had been fought. But her husband had a GCU that was 2 weeks from being 2 years old. He had a KSKJ that was about 6 months in. KSKJ paid. GCU did not.

You experience with companies must be far different from mone. In the last 50 years I hsve seen companies pay many claims that they could have contested. I had two claims paid, one by National Life and Accident and the other by American Pioneer under the terms of the conditional receipt becase the insureds died within a week of my tsking the application before the policies were ever issued. Unfortunately now most FE companies do not provide temporary coverage under a conditional receipt.

A couple of years ago I did have a claim contested by Columbian. The insured was married to my neice. He died of cancer about 18 months after the policy was issued. The investigation turned up a doctor"s record that said he had been diagnosed with cancer before he bought the policy but did not follow up with treatment. I am trying to remember if I evet had another claim contested but I can't think of one

 

[jdeasy]

You experience with companies must be far different from mone. In the last 50 years I hsve seen companies pay many claims that they could have contested. I had two claims paid, one by National Life and Accident and the other by American Pioneer under the terms of the conditional receipt becase the insureds died within a week of my tsking the application before the policies were ever issued. Unfortunately now most FE companies do not provide temporary coverage under a conditional receipt.

A couple of years ago I did have a claim contested by Columbian. The insured was married to my neice. He died of cancer about 18 months after the policy was issued. The investigation turned up a doctor"s record that said he had been diagnosed with cancer before he bought the policy but did not follow up with treatment. I am trying to remember if I evet had another claim contested but I can't think of one

How is that different? Most of my contestable claims have been paid. Companies contest 100% of contestable claims. Every company will tell you that too.

I've told by the CFO's of 3 major FE players that the industry average is about 40% are paid.

There will always be anecdotal evidence to the contrary but that doesn't change the overall facts.

I've written well over 6000 life applications. So just by sheer numbers I'm going to experience more contestable claims that many agents.

 

[Telesales314]

No answer on Lupus? Is it standard or graded.

Based on the app it looks like it would be GI. So not a niche for lupus.

I track the specific ailments that cause people to not get Immediate coverage (mainly bc I am a nerd and love spreadsheets and tracking). The only niches it would NOT help me with would be lupus, drugs, pending tests, and having cancer more than once.

Out of 305 Graded/modified policies I have since I started tracking, 248 of them look like they would qualify for CICA Level Coverage, or 81% of all my graded/rop business.

With 65% of my clients on Immediate already, adding this could potentially get me to a point were around over 90% of people have Immediate coverage. Plus I could lower the amount of total carriers I would need to be using. Have to wait and see what the commission looks like, and for them to add the wednesdays.

 

[Jccwell]

Based on the app it looks like it would be GI. So not a niche for lupus.

I track the specific ailments that cause people to not get Immediate coverage (mainly bc I am a nerd and love spreadsheets and tracking). The only niches it would NOT help me with would be lupus, drugs, pending tests, and having cancer more than once.

Out of 305 Graded/modified policies I have since I started tracking, 248 of them look like they would qualify for CICA Level Coverage, or 81% of all my graded/rop business.

With 65% of my clients on Immediate already, adding this could potentially get me to a point were around over 90% of people have Immediate coverage. Plus I could lower the amount of total carriers I would need to be using. Have to wait and see what the commission looks like, and for them to add the wednesdays.

Definitely overthinking it. Just pick them up and write them when you can.

 

[Telesales314]

GW makes the agent eat the first 3 months if the policy lapses.
What about this company ?

Does not appear so. Looks like they only charge back the unearned.

From the agent guide:
"Policy Year 1 commissions shall be subject to pro rata charge-backs if a Product lapses in the first 6 months. In such case, the commission will be charged-back in proportion to the amount of the premiums received on the Product (e.g., if the Product lapses after 3 months of Premiums received, 50% of the commission will be charged-back). Charge-backs will be transferred to an Agent's statement balance and deducted from earned commissions until debt is resolved.

 

[Telesales314]

Definitely overthinking it. Just pick them up and write them when you can.

Overthinking is my #1 hobby.

 

[Tahoe Ray]

Charge-backs will be transferred to an Agent's statement balance and deducted from earned commissions until debt is resolved.

That's interesting. I don't sell FE but have seen a lot of contracts. Do a lot of these carriers take chargebacks out of earned comp vs. just debiting all comp until repaid?

 

[Jccwell]

That's interesting. I don't sell FE but have seen a lot of contracts. Do a lot of these carriers take chargebacks out of earned comp vs. just debiting all comp until repaid?

No. The way they handle chargebacks is unusual.

 

[Telesales314]

That's interesting. I don't sell FE but have seen a lot of contracts. Do a lot of these carriers take chargebacks out of earned comp vs. just debiting all comp until repaid?

None that I have do it that way, they said (in another video) that they are trying to avoid situations where an agent is in a chargeback hole, and writes another company just to get some commission instead of the commission money going against their negative balance.

Sounds like they are trying to protect newer agents from themselves. I have seen a lot of new agents get crushed by chargebacks after doing well for for the first month or two, because they spent all the commission money and didn't account for chargebacks.

It all evens out in the end. Yes you get a commission on EVERY sale, but your renewals are that much lower. Its the same amount either way.

 

[jdeasy]

That's interesting. I don't sell FE but have seen a lot of contracts. Do a lot of these carriers take chargebacks out of earned comp vs. just debiting all comp until repaid?

No. That's a captive type setup. Favored by the likes of LH and SL.

I'm as earned with them. But I understand FEX is not doing that commission gimmick.