FEX Quote Engine

[VolAgent]

You are joking right? Funny.

You think if is is 1 penny off, that the company will do what?

Let me know the 1st time you find an agent that the engine cost them losing a client because it was 1 or 2 cent off.


Back in the old days, when agents use the rate book and had to do the per 1,000 thing. We had a lot of agent be off by almost 1 or 2 dollars.

Never had someone die, but I have had companies say they needed small amounts to place the policy, and yes it was more than a penny or two. And no, these weren't FE companies. You would hope the company would pay anyway, but it is one of those things I'm not eager to test out.

And yes, I don't think for a second you'd lose a policy because you were off by a penny in quoting it.

 

[jdeasy]

Name one carrier that will fail to place a policy due to a penny or two shortage.

A few other points:

1. Most of the FE companies draft on a voided check
2. Agents should be verifying rates
3. Agents really should not be quoting exact rates.

I just had a company refuse to place a policy that was off less than $10 on an annual pay. I had to go get the money and send in an M.O. to get it in force.

I find it unbelievable that you say to not quote exact premiums. Surely you are joking?

Especially in money purchase options. That's the whole purpose of doing a money purchase. I had one last year with AmCon and i used the rounding they provided and it was something like 48.37/mo for $7500, but on their money purchase it was like $7855 for an even $50/mo.

We did that with the client and when the policy was issued it was $49.99/mo. The company said it was different because it was $7855.50 to get to the even $50. They said they didn't put the change in their paperwork just because it was easier.

The client didn't see it that way. We had offered to to round up to make it an even number and when it wasn't he thought we would just messing with him.

This was the company issue. I don't pay them for their quoting. If I'm gonna pay for a quoting engine it better damn well be correct to the penny. In my opinion, anyway.

 

[WinoBlues]

Unless it is on an illustration (UL) I rarely quote to the penny. I always round up and many times will tell them that I could be a few cents off, up or down. Never had an issue with it. I know that Compulife rounds up on some of the UL premiums due to the calculations. No big.

 

[Mark]

I've found the rates to be 99.9% correct. Only error that I ever heard of was off 1 cent due to rounding.

But one can always just run their own quotes of they are worried about it.

It has never been an problem for any of my agents or any agent that I know that is using the program.

Again, 99.9% the rates are dead on. There might 1 out of 1000 quotes be off by 1 or 2 cent.

I will let you know the 1st time any of the agents I know using it have a problem with the home office.

 

[Newby]

I don't see any problem with being that close. You are using it to compare. Just add a nickel to the first premium.

If you hand figure Oxford Life you will be a nickel short compared to their prefigured rate cards. At least it was that way at the old rates.

You have a tool that saves hours out of your day and you are worrying about rounding pennies.
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Adam, here is how you solve the problem.

On companies that don't round the same way as your software, just add 5 cents to their policy fee in your calculation. So if their policy fee is $30.00 you set your program at $30.05

I did this for years when I built these calculators using excel spreadsheets.

I've NEVER had a problem with it.

 

[rousemark]

3. Agents really should not be quoting exact rates.

Don't understand the logic for this one. Why not quote the exact rate?.. I want the policy to come back exactly as quoted. If the premium is changed due to an extra rating due to health, etc you are going to have to get an amendment signed but I don't wan to go through that hassle just because I misquoted the premium.

Mark, I have had companies require an amendment because the amount submitted was only a penny or two short. The old NL&A used to do it all the time.. If there is an outstanding amendment, the policy is not in-force until it is signed so I agree with VOL AGENT, it pays to get it right the first time.. Might save you some court time.

 

[FEX Quotes]

I just had a company refuse to place a policy that was off less than $10 on an annual pay. I had to go get the money and send in an M.O. to get it in force.

Normally $5 is the threshold to hold a policy up regardless of payment mode.

I find it unbelievable that you say to not quote exact premiums. Surely you are joking?

Not joking at all. I believe the focus of the sales meeting should be on coverage and benefits - Not price.

I'm not saying that premium is not important, but I try not to make a big deal about it. I use a concept I learned from my P&C background called an indication.

I will indicate the premium to be about $XXX.00 or in the range of $XXX.00 to $YYY.00

Depending on the situation and vibe I get from the client, I will proceed accordingly.

I often will initially indicate a slightly higher premium. This tactic can make closing easier. For example, the rate I develop could be $112.66. In this case I might indicate 115-120

Especially in money purchase options. That's the whole purpose of doing a money purchase. I had one last year with AmCon and i used the rounding they provided and it was something like 48.37/mo for $7500, but on their money purchase it was like $7855 for an even $50/mo.

We did that with the client and when the policy was issued it was $49.99/mo. The company said it was different because it was $7855.50 to get to the even $50. They said they didn't put the change in their paperwork just because it was easier.

The client didn't see it that way. We had offered to to round up to make it an even number and when it wasn't he thought we would just messing with him.

This was the company issue. I don't pay them for their quoting. If I'm gonna pay for a quoting engine it better damn well be correct to the penny. In my opinion, anyway.

Money Purchase quoting is not something we offer yet but it's cases like this that highlight the importance of verifying rates with the company. Despite our disclaimer, the rates are pretty damned accurate.
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Don't understand the logic for this one. Why not quote the exact rate?.. I want the policy to come back exactly as quoted. If the premium is changed due to an extra rating due to health, etc you are going to have to get an amendment signed but I don't wan to go through that hassle just because I misquoted the premium.

Sorry I didn't make myself clearer on this one. I normally intially quote a range or an approximate price with my focus oriented towards coverage, benefits, etc..

After the sale is made and when it comes dotting i's and crossing t's, I will confirm exact pricing.

Mark, I have had companies require an amendment because the amount submitted was only a penny or two short. The old NL&A used to do it all the time.. If there is an outstanding amendment, the policy is not in-force until it is signed so I agree with VOL AGENT, it pays to get it right the first time.. Might save you some court time.

I concur that getting it right up front is the way to go, but I have also never dealt with a company that refused to place a policy over a penny or two.

That being said, despite FEX quotes being nearly perfect, one should always verify final rating with company charts.

 

[jdeasy]

Normally $5 is the threshold to hold a policy up regardless of payment mode.



Not joking at all. I believe the focus of the sales meeting should be on coverage and benefits - Not price.

I'm not saying that premium is not important, but I try not to make a big deal about it. I use a concept I learned from my P&C background called an indication.

I will indicate the premium to be about .00 or in the range of .00 to .00

Depending on the situation and vibe I get from the client, I will proceed accordingly.

I often will initially indicate a slightly higher premium. This tactic can make closing easier. For example, the rate I develop could be $112.66. In this case I might indicate 115-120



Money Purchase quoting is not something we offer yet but it's cases like this that highlight the importance of verifying rates with the company. Despite our disclaimer, the rates are pretty damned accurate.
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Sorry I didn't make myself clearer on this one. I normally intially quote a range or an approximate price with my focus oriented towards coverage, benefits, etc..

After the sale is made and when it comes dotting i's and crossing t's, I will confirm exact pricing.



I concur that getting it right up front is the way to go, but I have also never dealt with a company that refused to place a policy over a penny or two.

That being said, despite FEX quotes being nearly perfect, one should always verify final rating with company charts.

I'm not really busing on your service. It seems to be of value to some agents.

if you don't have the money purchase option then that's not an issue.

I will disagree 100% with your approch to not focus on price for FE. That is everything. That's the whole reason to even have a quoting tool. That's why I carry so many companies. I've done almost 300 apps again this year. I just looked and the most I have put with any company is 95.

But, that's a whole different conversation than if your rates are 100% accurate.

 

[rousemark]

Sorry I didn't make myself clearer on this one. I normally intially quote a range or an approximate price with my focus oriented towards coverage, benefits, etc..

After the sale is made and when it comes dotting i's and crossing t's, I will confirm exact pricing.

OK.. Have no problem with that.. Do it similar myself but when it comes time to write the premium on the app and collect the premium from the client, I want it rector down to the penny if possible..

And, I do normally collect even though I am trying hard to force myself to accept that new fangled way of faxing the app and allowing the first premium to be drafted.. When I say, "force myself", that is what I mean because it is a struggle.. It was drilled into me in the old days that you don't have a sale until you have money on deposit.

 

[FEX Quotes]

... I will disagree 100% with your approch to not focus on price for FE. That is everything. That's the whole reason to even have a quoting tool...

How can you concentrate on price in the FE market when in most cases the price between the top 5 companies is less than a couple of bucks?