Insurance Producer Attestation

Dec 12, 2015

  1. AgentStone
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    AgentStone Super Genius

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    On Quotit after the client submits the app, the agent it to sign an Attestation.
    Basically, this is a new plan for 2016, so I would assume it is NOT a replacement or change to existing policy. It just doesn't make sense to even ask that question....

    Here's what it says and I am not sure whether I am to say Yes or No. Does anyone know???? Thanks!
    ______________________________________

    Insurance Producer Attestation

    Will this policy/contract replace or change any existing insurance policy(ies)/contract(s)?


    Yes or No


    As the Writing Agent / Producer, I acknowledge that I am responsible to meet with the proposed primary insured submitting this application in order to fully and accurately represent the terms and conditions of the policies/contracts and services of the insuring entity, or one of its subsidiaries. These provisions are available to me and the proposed primary insured in the benefit summary document or other policy/contract literature.
     
  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Are you SOLICITING (recommending) that the client replace or change any currently in-force policies?

    If you're recommending a replacement, say so.

    If you're not recommending a replacement, then you state 'no'.

    The insurance company and state regulators want to be sure that you're not 'twisting' or replacing policies needlessly and unnecessarily. If you're not doing this, then you don't need to worry about it.
     
    DHK, Dec 12, 2015
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  3. AgentStone
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    AgentStone Super Genius

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    Thanks for the info and clarifying this issue.

    I've seen "replacement" forms with Med Sups. Generally they ask if your are replacing to lower prem, get better coverage and so on.

    ACA... most insurance companies I have seen do not offer the same plan from yr to yr. Most have increased ded, co-ins, co-pays so they file under a new plan name. The insurance company sends the existing client a letter stating that they will be on the new plan if they make no changes. So in essence, the client was changing anyway. The client can either stay with the same ins plan (if offered) or switch.

    I lay out the options, the client chooses what is in their best interest. Funny....I never considered it as being a replacement like moving from one Sup to another...
     
  4. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    That question's asked on just about every health or life application. Just answer the question.

    I like your avatar.
     
  5. Newby
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    That's not really correct. Even if they canceled a policy a week before you ever met them, it's still replacement. It has nothing to do with your recommendation.
     
    Newby, Dec 12, 2015
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  6. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    What a client does outside of my knowledge and recommendation is not included in an agent attestation.

    It may still fall under the definition of a replacement, but it's not something that I have any control or knowledge of, if I'm not recommending it.

    What a client does outside the scope of advice from an agent... is on the client.
     
    DHK, Dec 12, 2015
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  7. AgentStone
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    AgentStone Super Genius

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    Thanks for the comments…Hummm…. A bit confused here.

    - Newby suggests that in all cases we would state YES to replacement.
    - DHK suggests “What a client does outside the scope of advice from an agent... is on the client. “ So, answer No to replacement.


    What if you provide quotes with multi company plans and don’t recommend one plan over the other…

    This client currently has a PPO health plan. Her current company will not offer a PPO in 2016. They are not happy with the HMO plans offered by the current insurance company for 2016. I presented plans with all of the companies offering insurance in her county. She picked a new company plan that would fit her needs for 2016.

    Is this a replacement?

    (thanks, goillini52 I like your avatar too!)
     
  8. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    In that instance, because you know about the prior policy and available options, I WOULD mark this as a replacement and state the situation in your attestation.

    The interpretation of replacement might be different as it relates to health products than it does with life products.
     
    DHK, Dec 13, 2015
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  9. Newby
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    With a life policy if they told you they lapsed their old policy last month and need a new one, do you not fill out a replacement form? Does your state not instruct you to do so?

    I'm sure it's not a huge deal because I know of agents who never fill them out and they don't seem to get into any trouble. But when it comes to replacements forms I just fill them out if I have any knowledge. I figure it's safer for me that way.
     
    Newby, Dec 13, 2015
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  10. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    I think of replacement attestation by the agent like a B/D switch letter.
    - Am I recommending (soliciting) that someone switch from an old policy to a new one?
    - If so, what are the advantages of replacing that policy versus keeping the old one?
    - What are the disadvantages and does the client know and understand them?

    If the client lapsed a policy before meeting me, it is not in force. To me, that's good information to have for my client notes, but it's immaterial to the application.

    I'm not replacing that policy as a professional. I'm helping the client to buy a new policy (assuming that the old policy cannot be reinstated).

    The agent attestation is ensuring that I'm disclosing my selling activities and recommendations so the insurance company (and subsequently state regulators) know the details behind the purchase and sale of this policy.

    If I'm telling someone that they can cancel a policy after they buy a new one (and it's in-force), then that can be a replacement.

    If the client is buying an additional policy to supplement other insurance, I'll document the other policies, but it's not a replacement. If the client chooses to cancel a policy aside from my recommendation, it's still not a solicited policy replacement because I didn't recommend it, nor was I consulted.

    Basically, are you disclosing what you need to justify the sale? Are you protecting yourself? Can you back up the recommendation and disclose what is needed for the insurance company to issue the policy? Will it all hold up in court, if one was sued?

    So yeah, I focus that question on my behavior and my advice, not on what clients may or may not do before or after the sale.

    ----------

    Now, as for filling them out if you don't have to... as long as you are properly wording everything as to who has done what... I'm sure you're just doing extra paperwork. It won't be a big deal.

    I prefer e-apps whenever possible, so I just complete what's needed. I can always include additional notes on the page for the agent's statement, etc.
     
    DHK, Dec 13, 2015
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