Closers versus Insurance Salespersons ???

[moonlightandmargaritas]

Paul, the stuff is a miraculous health drink that allegedly can improve your looks, well-being, immune system, etc. Sounds like the perfect sales opportunity for this guy.

Geez, thanks arn. I thought maybe it was a new HMO in Miami or something.

Doesn't sound like it's got much value for me - I've got all of those bases covered!

 

[myinsurebiz]

It seems that most States have too many regulations against this concept. So while it sounded good - it will be to hard to put together and police.

I had a MGA here in Georgia ring me up this morning and offer her advice and it made sense.

Start in Georgia, where subagents are allowed. Assign these subagents to a GA that has the necessary appointments and let it fly. The telemarketing team can funnel the leads to the subagents based on area of expertise.

If it works out - then we can expand. Should the subagent wish to become an agent - we'll help them do it.

I'll keep ya posted down the road.

Got to go set it up - back in a few weeks . . .

Tom

 

[Dave020]

That is why e-healthinsurance has all of their call center people licensed and appointed (they probably have some kind of block appointment since they produce such large volume). They are a good model for this type of thing.

Going the GA route is much more logical. That way there are appointments and full disclosure. Only thing I would wonder, and this probably differs state to state, is what you are giving up to the GA for IFP business. In California, group has a GA override so full writing agent commission flows to the agent, GA gets cut on top. IFP, at least here, has no such provision so the agent must both surrender a portion of the earned commission and be sub-agent to the GA who is primary.

Here, since Blue Cross does not recognize sub-agents on IFP business, you lose the whole enchilada.

 

[senior-advisor-indiana]

Okay, that all sounds good. Usually, however, when a insurance agent focuses on a subject like "closing" or hiring "professional closers" (IIRC, the only time I ever heard the term professional closer in a business enviroment was in the car business.), he isn't too interested in the client's best interest, or which policy is the best fit for the client. He's interested in selling the policy that he gets paid the highest commission to him. If you aren't doing business that way, good for you.

IMO, you would save yourself from lots of headaches down the road, (E&O Claims, etc.), if each and every closer/producer/agent is appointed with all of the companies he is representing. Let me give you a for instance:

One of your producers sells Mrs. Smith a Medicare Supplement, that is a Part D. She gets the misconception that she has Part F supplement, and when she goes to the hospital after she breaks her hip, she ends up owing the Hospital several thousand dollars. Mrs. Smith's son-in-law, who just happens to be a personal injury-medical malpractice attorney, calls the Department of Insurance, and gives your producer's name as the agent who sold this product. When DOI investigates the complaint, they find that your 'closer' was not licensed and appointed to represent this carrier. Best case scenario, your producer loses his/her license. Worst case- you both lose your licenses, and are fined. The potential liability for not get each and every producer appointed far outweighs the time and money it takes to get it right.

Good luck,

Dave

I am not trying to be a pain, but part D is for RX and there is o such thing as part F. So in this case you are right, the client will owe thousands for not having a med supp.
Even if the client had PLAN D, they would not owe thousands, not here anyways.

 

[djs]

This is specifically prohibited in California. And any agent found to be doing what WA does in your scenario will lose appointment with that carrier, face contract termination, disciplinary action, fines and revocation of insurance license.

I spoke with Blue Cross CA about what would happen if they found out about this being done and was told straight out that the agent would be terminated immediately and reported to the CA DOI for disciplinary action. Immediate contract termination!

While I'm not in favor of giving away 75% of my commission for doing the easy part of the work, how is this setup different from having a producer?

I guess it would depend on the contract with the closer.

Of course, if he's as good at closing as he claims, there is a fortune to be made on the speaking tour route, especially if he can truly replicate this across multiple people and closers.

Insurance sales is all about a decent steady income earned over a period of time. I've seen a lot of people want to find the 'secret sauce' to instant success. This industry doesn't work that way. You have to like being the tortoise, and not the hare.

As others have said, if I can do high volume closes I wouldn't want to give up the book of business. I won't service an account for 25% of the commission. It's a non-starter plan. I had someone offer to do this for me at a 50-50 split, I turned that down.

Dan

 

[360]

win said - " The only person that wants to be a "closer" is someone that either can't get a license or can't get appointed. Anyone else got an good reasons one would chose this imaginary position. "

Not! We will only work with licensed insurance agents - period. The "appointment" process is time consuming, not to mention the certifications, trainings, etc . . . The purpose of closers is to "close" deals in mass and in the least amount of time necessary. I guess we'll see . . .

The appointment process takes about 10 minutes per carrier, you need a handfull of carriers, so maybe an hour of time per agent.

IF you are serious about setting up a system in which all your "closers" do is close sales, get ahold of the folks at Insurance Only, they offer a fullfillment service whereby they split commission 75/25 and handle all back office functions. You collect the info from the client and they do the rest.

There is no logical reason not to set it up this way. You as they agent can still have a bank of telemarketers unlicensed cultivating leads for YOU to close as the licensed appointed agent. It's a no brainer if you are as good as you say you are. They have a couple of people writing 5 apps per day.

 

[gradyinsurance]

I am not trying to be a pain, but part D is for RX and there is o such thing as part F. So in this case you are right, the client will owe thousands for not having a med supp.
Even if the client had PLAN D, they would not owe thousands, not here anyways.

You're right, of course. I was in such a hurry to show an analogy that I made a typo. What I meant to say was, that the lady thought she had a Plan F, and only had a Part D. In other words, she was completely wrong. But, if you've got unqualified people selling these products, this is a possible scenario. Would Tom's closer have known the difference between Plan F and Part D. Probably not. (P.S. I don't sell Medicare Supplements myself, so I was relying on what I know about them, which isn't a great deal.)

Dave

 

[somarco]

A wise person once told me, "Never teach a pig to sing. It wastes your time and annoys the pig".

Singing lessons are over.

 

[slushhhpuppie]

I still don't understand what the problem with the appointment process is. Its not like they are asking for a sample of your bone marrow.

What a hassle! It takes me about 0.18 seconds to sign my name, how about you?

 

[sman]

It seems that most States have too many regulations against this concept. So while it sounded good - it will be to hard to put together and police.

I had a MGA here in Georgia ring me up this morning and offer her advice and it made sense.

Start in Georgia, where subagents are allowed. Assign these subagents to a GA that has the necessary appointments and let it fly. The telemarketing team can funnel the leads to the subagents based on area of expertise.

If it works out - then we can expand. Should the subagent wish to become an agent - we'll help them do it.

I'll keep ya posted down the road.

Got to go set it up - back in a few weeks . . .

Tom

Oh Tom, we'll be sitting by the computers waiting with great anticipation for you to come back.

Amazing, every experienced agent on this board has told you it won't work and now you finally agree because some MGA told you so.

I'm in Georgia and I can only hope and pray that I come across the people you've sold and not given another thought to. People love the fact that they have a relationship with a "trusted adviser". They're not too loyal to the person that helped them with a transaction. They call their "trusted adviser" when some other agent tries to sell them something. The transactional adviser is soon replaced.

If I don't replace you (or your type) shortly after you've made the sale, I definitely will at renewal time. I'm not bragging, but I just don't lose clients. If I've sold them health insurance (under 65), the only time I lose them is if they've gotten a job that offers group insurance. If I've sold them a Med Supp or MA, I keep them. Each year we see what's available and make changes if necessary. Makes for great renewal income.

And in 10 years of investing people's money, I've lost one investment client to another adviser (and that was because she remarried and went with her new husbands adviser). All because I am a "trusted adviser" and not a transactional adviser. This allows great freedom once you've built this type of reputation and have many referrals and great renewal income.