Direct Billing Question

[shonceman]

I’ll say this about GI. When I first started writing it with Vantis, besides chargebacks from early death, I was also nervous about chargebacks due to lapses. Other GI/graded carriers often have similar provisions. But I’ve discovered that my GI business is actually my most persistent business.

 

[jerryrut]

Now that I’m in Florida and don’t have the options that I had before, I’ll prob write more GI. I’ve got a lot of MA clients with serious health issues.

 

[VolAgent]

I agree with you, except in the case of home service clients, like the people I mentioned above. The nuances of working with that particular type of client really require that you turn away business at times. They often take on more than they can handle because of emotional pressure they’re feeling at the moment. Adding more coverage, whether on themselves or other family members can jeopardize the whole case. So sometimes it makes sense to talk them out of it. In this particular case, some of those nuances led me to not write grandma. That may or may not have been the right decision in this case.

No argument, although I might say that falls into the ethical or moral aspect. But definitely, some people over buy and need to back it down just a bit.

 

[jerryrut]

I mainly write accidental death in a common carrier; I don’t like UW or claims

 

[rousemark]

No agent has ever lost a penny on GI case charging back. I write every single case that I get the opportunity to write. Just stick the money in your reserve account if you think they won't make it for a year.

The charge back for rescinded policy is understandable.. The agent should not expect ot be paid on premiums that are NOT retained by the company. However, the charge backs for lapse frost me. The company keeps the premiums paid and therefore the agent should keep his commission..

 

[Todd King]

I agree with you, except in the case of home service clients, like the people I mentioned above. The nuances of working with that particular type of client really require that you turn away business at times. They often take on more than they can handle because of emotional pressure they’re feeling at the moment. Adding more coverage, whether on themselves or other family members can jeopardize the whole case. So sometimes it makes sense to talk them out of it. In this particular case, some of those nuances led me to not write grandma. That may or may not have been the right decision in this case.

I never gave the home service agent a thought. That's probably because I would never dream of trying to become one.

 

[Todd King]

The charge back for rescinded policy is understandable.. The agent should not expect ot be paid on premiums that are retained by the company. However, the charge backs for lapse frost me. The company keeps the premiums paid and therefore the agent should keep his commission..

And this is the reason I like AIG over Gerber.

 

[jerryrut]

So, does AIG not charge back for lapses???

 

[Todd King]

So, does AIG not charge back for lapses???

Chargeback for lapses is 25% in months 1-6 and 0% months 7-12, and chargeback on death is 100% in months 1-12 and 50% months 13-24.

 

[shonceman]

I never gave the home service agent a thought. That's probably because I would never dream of trying to become one.

Haha! It’s definitely not for everybody! But, as @VolAgent suggested, that emotional response leading to a client over buying isn’t unique to Home Service. FE agents need to be careful with that, too, for persistency’s sake.