IMO Wants Me to Send Apps to them

[mbiallas]

I just joined a new organization through which I am going to broker some FE business. Today I found out they want me to send my applications directly to them and they will submit to the carriers. They say that its to scrub the apps prior to submission but I'm a big boy and don't need that kind of hand holding. This sounds a little weird to me. Should I be worried about this?

To be fair I am going to be purchasing some leads from them (they are not cost sharing as I am brokering).

Maybe its nothing but I just want to get a feel from some of the veterans out there.

 

[jdeasy]

I just joined a new organization through which I am going to broker some FE business. Today I found out they want me to send my applications directly to them and they will submit to the carriers. They say that its to scrub the apps prior to submission but I'm a big boy and don't need that kind of hand holding. This sounds a little weird to me. Should I be worried about this?

To be fair I am going to be purchasing some leads from them (they are not cost sharing as I am brokering).

Maybe its nothing but I just want to get a feel from some of the veterans out there.

If you are talking about EFES it's normal. You can send them direct to the company if you wish. I prefer to send mine through EFES.

If on the lead program you would definately want them to have it because that's how you get credit for PPL purposes to lower your lead costs.

Even then you can fax direct to the company and just send the page one so that they know you wrote the business. or if you don't care if you get credit then you wouldn't even have to do that.

I like for them to scrub my applications and catch things that I might have messed up before the company gets it. They have saved me a few amendments over the years.

 

[donamese]

Quite a few IMOs do this so it is not out of the ordinary. Their check is actually nice because they will be very responsive if they find something. Some carriers are quick to notify you of issues, others, not so much.

 

[Dragline]

I just joined a new organization through which I am going to broker some FE business. Today I found out they want me to send my applications directly to them and they will submit to the carriers. They say that its to scrub the apps prior to submission but I'm a big boy and don't need that kind of hand holding. This sounds a little weird to me. Should I be worried about this?

To be fair I am going to be purchasing some leads from them (they are not cost sharing as I am brokering).

Maybe its nothing but I just want to get a feel from some of the veterans out there.

I'd be leery of it.


IMOs, just like carriers, need maniacal follow-up and I wouldnt trust them to forward it timely and without errors.......sending apps thru the IMO just another step that has to be supervised.

Honestly, every time I submit an app to a carrier I have this idea that it would sit there forever if I didn't:

1) call to see if they got it------they never say they have received it
2) ask day #2 if its in progress------usually its been fumbled by then and they don't know where it is
3) fight thru sheer chaos----there's always some legendary amount of confusion over whether a phone interview is necessary, and if so what entity does it and how to reach them, then, of course, the phone interview entity never received the order and therefore haven't done the interview, etc

4) then it waits in limbo another 2-3 days where nobody knows where the app is and what its status is

then.............................to top it all off..........................................

they advance the wrong amount...................twice............because they claim I have chargebacks..............when my commission statements show clearly I have none..............

so............no, I'd send it directly myself if I were you.

 

[donamese]

I'd be leery of it.


IMOs, just like carriers, need maniacal follow-up and I wouldnt trust them to forward it timely and without errors.......sending apps thru the IMO just another step that has to be supervised.

One thing to remember, is the IMO has a vested interest in the policy getting set up quickly as they receive commission on it as well.

 

[Ryan Caras]

If you are talking about EFES it's normal. You can send them direct to the company if you wish. I prefer to send mine through EFES.

If on the lead program you would definately want them to have it because that's how you get credit for PPL purposes to lower your lead costs.

Even then you can fax direct to the company and just send the page one so that they know you wrote the business. or if you don't care if you get credit then you wouldn't even have to do that.

I like for them to scrub my applications and catch things that I might have messed up before the company gets it. They have saved me a few amendments over the years.

EFES did a mini analysis of exactly what JD is saying and we found out that 48% of the time something was missing on the app... could be major things like a health question left unanswered or something simple like age missing... but we check the apps because EFES is only successful if our agents are successful so we need as little hick-ups as possible when getting business issued.

 

[WinoBlues]

One thing to remember, is the IMO has a vested interest in the policy getting set up quickly as they receive commission on it as well.

My vest is bigger than their vest. That and it is not their client. Only I and the insurance company need the client info.

 

[Stephen]

I'd be leery of it.


IMOs, just like carriers, need maniacal follow-up and I wouldnt trust them to forward it timely and without errors.......sending apps thru the IMO just another step that has to be supervised.

Honestly, every time I submit an app to a carrier I have this idea that it would sit there forever if I didn't:

1) call to see if they got it------they never say they have received it
2) ask day #2 if its in progress------usually its been fumbled by then and they don't know where it is
3) fight thru sheer chaos----there's always some legendary amount of confusion over whether a phone interview is necessary, and if so what entity does it and how to reach them, then, of course, the phone interview entity never received the order and therefore haven't done the interview, etc

4) then it waits in limbo another 2-3 days where nobody knows where the app is and what its status is

then.............................to top it all off..........................................

they advance the wrong amount...................twice............because they claim I have chargebacks..............when my commission statements show clearly I have none..............

so............no, I'd send it directly myself if I were you.

I used to have the same opinion and think that I had to do everything my self to get it done right, but I have an opposing point of view on this issue now. I have my FMO earn their override....they scrub the app, schedule a para med if necessary, follow up, and track it, which leaves me more time to produce.

 

[VolAgent]

My vest is bigger than their vest. That and it is not their client. Only I and the insurance company need the client info.

If a carrier finds a missing check-box, hello amendment. If an IMO finds a missing check-box, its fixed.

For most agents, having an app scrubbed is a godsend. They may be new to insurance, do not pay attention to details, or simply unfamiliar with the company and its apps. Or some combination. Any agent in any of those situations would benefit from having the app scrubbed first.

Plus, if you don't trust your IMO, why are you doing business with them??? You do realize that with many carriers, your IMO can see most if not all the information you can online, including insured's contact info.

 

[TDFnCali]

If a carrier finds a missing check-box, hello amendment. If an IMO finds a missing check-box, its fixed.

For most agents, having an app scrubbed is a godsend. They may be new to insurance, do not pay attention to details, or simply unfamiliar with the company and its apps. Or some combination. Any agent in any of those situations would benefit from having the app scrubbed first.

Plus, if you don't trust your IMO, why are you doing business with them??? You do realize that with many carriers, your IMO can see most if not all the information you can online, including insured's contact info.

+1 on that ^^^^

I like sending my apps to EFES, Ive had errors corrected that way.