Dirty Little Secret

[Medicine Man]

Most agents aren't told what the terms "home office approval" or "authorized exam company" really mean but they should be aware that it's not a statement about anything having to do with the actual medical exams. It's strictly in reference to payment for exams.

"Home office approval" and "authorized exam company" merely designates which exam companies have a contract with the given carrier. A contract which allows them to bill the carrier for exam services. It has very little to do with their quality of work, the skill of their examiners, time service, or their customer service. Simply put; it's about which companies provide exam services for the least amount of money.

In many cases agents receive a list of exam companies they are told to choose from and topping the list as the preferred vendor is usually whichever is cheapest. Many others are told "you don't need to worry about that, we'll take care of it for you". And still others have their exams automatically ordered by the carrier (through an online system) when they turn in their applications.
Those exam requests ending up at a managed scheduling center which is often located many hundreds of miles away from the client.

Most of the exam companies who are "approved" got their approval by undercutting the other exam companies on pricing. Their examiners aren't any more qualified, skilled, or experienced than another company's examiners. In fact, because of undercutting, many exam companies are unable to find experienced examiners or retain good examiners because their pricing doesn't allow them to pay much more than minimum wage.

Whether you're a captive agent, independent or a broker, the examiner or exam company servicing your client is a direct reflection on you in the client's mind. It's in your best interests to gain or keep control over being able to choose for yourself. And when you can, do yourself a favor and try to find an independent examiner or independent exam company to handle your business. Every independent will be "approved" through their billing connections and you'll usually get much better and more personalized service than you'd get from the big companies who are making the sweetheart deals.

Independents, like most agents, are invested in their business. They're the not part-timers or people working in this field to bridge the gap until they can find another job, frequently encountered with the big companies. They're career examiners.

 

[InsuranceMonkey]

Yes and no. Yes, vendors compete and price is certainly a part of the process. However they need to meet certain expectations of customer service and speed of service. My last 2 companies have had an employee in charge of vendor relations and bringing up concerns, violations within the contract with terms of service, or out right unacceptable problems that have occured. I've seen individual examiners discharged due to poor conduct, vendor companies dropped and replaced because of unacceptable service failures.

You as an Agent, if you have a sincere concern that you would like addressed with how an exam went (or did not) with a client, contact a New Business Manager, state your (or your client's) concern, and that you would like it addressed with the Vendor. There's a prety good chance you'll get some form of resolution to the problem.

That being said, yes - there's some crappy vendors out there. The more rural you go, the fewer options are available and you just don't know about a vendor until you give them a try.

 

[VolAgent]

As an agent, I can't help but think, "And?"

I really don't need the hassle of finding and managing an examiner. Being able to call one number and have it taken care of is a plus, not a negative. Also, I definitely don't want the problem of dealing with an insurance company about if they will pay for the exam or not.

 

[LGilmore]

+5000 to what Vol has written.

What the poster is basically saying is he doesn't like what he's being paid... welcome to the club.

 

[BNTRS]

I have to use one of the big names as I do business all across the country. It would be great if I had some sort of contact for a smaller regional outfit in all regions, but that's pretty impractical. And I'm sure every carrier is in the same boat (i.e. the time and energy that would go into sorting out smaller operations is too burdensome).

I do keep track of how paramed exams go, and ask for feedback from clients. There are some trends.

Of course, depending on the location, the set up can be quite different. Major metropolitan areas tend to be pretty in top of things. Rural areas sub contract people who cover crazy large territories, and it can be hard to manage.

 

[donamese]

While the companies do take cost in to account, they also have to look at quality as it directly effects the business as well. Crappy examiners can lead to poor claim costs which are significantly more than the cost of a better exam. Exam costs also effect pricing so they aren't going to pay the highest sums just because the most expensive is always the best. The cost of the exam is paid either by the client (premium) or agent (commissions) so you want them to rob Peter to pay Paul. Good Luck with that in this forum!

 

[WinoBlues]

I have found a local person that I use locally. But outside of that it is easier to have one phone number and website to deal with. Like the other guys I work in a dozen different states.

 

[Focus LTC]

I only use a vendor for my clients that I've used myself. I bought a new Life policy this past summer and had a very pleasant experience. I don't write much medically UW term, but when I do, I will be using this company.

As a matter of fact, my wife will be having a paramed exam this Fri. for a Life contract. This will be round 2 of a customer experience with this company. We'll see how it goes.

Best thing to do is to ask for feedback every time from your customer...

 

[Medicine Man]

"And?"

And what? I was putting it out there as an FYI.

If you were already aware of it and what you're doing works for you, great! If you weren't aware of it; food for thought.

LGilmore,
You don't know me, personally nor professionally, so please don't presume to know what I'm thinking. I wrote what I was thinking and in none of it was there a statement about dissatisfaction with my income.

I put this out there because I'd want to know about it if I were an agent and because I personally know agents who aren't aware of it.

I'd want to know about anything that might adversely impact my success in my chosen profession, particularly if it was something I could control.

 

[hammerken]

I use the major vendors but I do cherry pick offices. There can be huge differences in service quality from one office to another.