Don't even think about rolling a book of Medicare business!

[Travis Price]

My question: If you're doing whats right for the client, who cares?

I tell people to shop every 2-3 years. It doesn't mean we'll switch, but they should look.

 

[rousemark]

Agents are torn between doing what is right by their clients and keeping their agent contracts in good standing. Every year we have agents who move substantial, if not all, of their clients from one carrier to another. Naturally this angers the losing company and they are within their legal rights to TERMINATE the agent's contract. Agents call us freaked out that they were getting their clients a better plan and they should not be terminated for doing the right thing! But carriers can terminate an agent with 30 days notice without reason - and they do! Tread lightly, because not only do they terminate agents for this, they bar them from ever re-contracting.

And, most contracts state you can be terminated for cause for doing this.. That means you no longer receive your vested renewals on the business you did not roll. I have often wondered why companies did not enforce the terms of their contracts when it came to replacing medicare supplement business. And, while the agent claims they are "helping their clients get a better plan", they are killing those clients that cannot change. The agent is taking away all the healthy clients, leaving the unhealthy ones to endure even higher premiums due to higher loss ratios.

 

[vic120]

The question's I have is why did this come up, I mean did an agent just get termed for this?

If so did that agent just flip most of his book after changing FMO's and getting higher commision or some similar situation?

Or was this the normal 2 to 3 year check rates deal?

 

[Travis Price]

She's with Gordon. There was no situation where this came up recently. It's her posting for this very discussion.

I don't worry about the carrier. Their job is to make as much money as they can. Our job is to make sure that our client gets the best value possible for their money.

They can get pissed and term me for moving people off their product. I'll just make sure as many people go with me as possible.

 

[goillini52]

I think someone just wanted to make a post about something.

It's a form of recruiting.

 

[Glen Shelton]

My question: If you're doing whats right for the client, who cares?

I tell people to shop every 2-3 years. It doesn't mean we'll switch, but they should look.

^^^ This!

I know many agents who will roll their own clients from 1 carrier to another and why shouldn't they???

If they won't service their client(s), another agent will!

 

[Todd King]

^^^ This!

I know many agents who will roll their own clients from 1 carrier to another and why shouldn't they???

If they won't service their client(s), another agent will!

This is something that agents in the field would do as a norm. But if you've never really worked the field, then I guess you just really don't know, huh?

Some outfits are concerned more with the companies than with the clients. I'm glad I've never been concerned about the companies!

 

[StephanieCJ]

If a company is willing to term me for doing what is in the best interest of the client, then I might consider myself lucky. All companies are here to make money, as am I, but if they are out to screw the client, then they are out to screw the agent too. Best to cut losses early.

 

[Sal15]

I work in Oregon which has a birthday rule and have switched hundreds of clients during any given year fro less expensive companies. Even though it states in some of my contracts that I can be terminated for this it's never been an issue.

 

[Todd King]

If a company is willing to term me for doing what is in the best interest of the client, then I might consider myself lucky. All companies are here to make money, as am I, but if they are out to screw the client, then they are out to screw the agent too. Best to cut losses early.

And this is exactly the way I have run my business my entire career. Hasn't come back to bite me yet.