How to Cancel a Policy You Are Replacing

Before we derail the thread completely let's get back to insurance basics 101 here.

Don't tell the client to stop their bankdraft dude. That's in poor taste and unprofessional. Do what homeboy said up there and make a cancellation form for the client when you sign the new app or hand deliver the policy (as if anyone still does that).

Simple form and doesn't need to say much, just make it look like a business letter.

John J Policyholder
111 Rate Hike Road
Claimsville, IA 50123

Please cancel my Medicare Supplement policy # ________ effective __________ and do not continue to steal money from my account, it's why I hate bankdraft anyways!

Up Yours,

John J Policyholder


Then when you get the new policy issued...fax the signed cancellation form to the old carrier.
 
I guess they don't do that in Missouri, Fisher. In PA Wachovia charges you to come in the door. They've more fees than you can shake a stick at.

Oh, I'm not saying the bank doesn't have a charge for shutting down a draft; in fact, I'd be surprised if they didn't! I hate banks... Just saying I've never once had it mentioned to me. Probably because my usual modus operandi is to have the client call the insurer and tell them to switch the draft to direct bill. Once the new policy is effective the client lets the replaced coverage lapse by non-payment.
 
Oh, I'm not saying the bank doesn't have a charge for shutting down a draft; in fact, I'd be surprised if they didn't! I hate banks... Just saying I've never once had it mentioned to me. Probably because my usual modus operandi is to have the client call the insurer and tell them to switch the draft to direct bill. Once the new policy is effective the client lets the replaced coverage lapse by non-payment.

That works too!
 
I think that's what I said to. Hmmm

Oh, I'm not saying the bank doesn't have a charge for shutting down a draft; in fact, I'd be surprised if they didn't! I hate banks... Just saying I've never once had it mentioned to me. Probably because my usual modus operandi is to have the client call the insurer and tell them to switch the draft to direct bill. Once the new policy is effective the client lets the replaced coverage lapse by non-payment.
 
Oops. I meant too. Stinking blackberry. You know, to call the insurance company to cancel the policy.
 
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Oops. I meant too. Stinking blackberry. You know, to call the insurance company to cancel the policy.

I'm way confused... you quoted me but nowhere did I say anything about calling the insurance company to cancel the policy. Am I just retarded?
 
Oh, I'm not saying the bank doesn't have a charge for shutting down a draft; in fact, I'd be surprised if they didn't! I hate banks... Just saying I've never once had it mentioned to me. Probably because my usual modus operandi is to have the client call the insurer and tell them to switch the draft to direct bill. Once the new policy is effective the client lets the replaced coverage lapse by non-payment.

Why not just cancel the policy?

I would think most seniors would hate getting those bills from the insurance company, not to mention any conservation letters. Even if the they know the bills are coming I can't imagine most are cool with that.

I have heard of people stopping the bank draft in a time pinch but they would still send a cancellation letter.

It seems to me that it would just be easier to do the right thing and cancel the policy, instead of p**sy footing around the issue.
 
I NEVER stop the draft except in an emergency because I don't like to pay bank fees and I don't want my clients to either. The most important thing to me is whatever method I use....fax, scan/email, phone call, I make sure I have proof of the cancellation. If I use a phone call I fax one in anyway.

Big Blue has lost faxes too many times to remember. For a buck, a fax from Fed Ex copy center will have your transmission receipt right on the page you faxed.
 
Then when you get the new policy issued...fax the signed cancellation form to the old carrier.



I always deliver the policy well in advance (about 2 weeks)of the effective date. While I'm there I lock in the sale, get referrals, present LTC, etc.......

Only then do I ask them if they would like me to cancel their existing coverage. If so, I have them sign a request to cancel which I later fax with confirmation.

If you have the policy mailed directly to your applicant, it would be risky to fax a pre-signed cancellation request immediately upon issue of the new policy. How do you know the client won't cancel during their free look? Then where are they?
 
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