John Hancock LTC Question

[russelltw]

If you have a client who has a JH LTC policy and you make a change to it, do you become the agent of record and start getting renewals on those?

 

[NWSINS]

I think you would get paid on any increase in premium. Not the orginal renewal premium.

 

[Arthur Rudnick]

Replacement is looked at differently by every state.

In NY, when replacing a policy, the agent would only receive the renewal amount as the 1st year's commission and the same renewal amount in subsequent years. (according to your contract)

Some state's will pay 1st year's commission only on the increase of premium on the replacement over the original policy, if in fact the new policy is higher priced than the one being replaced.

I'm not sure if it's a DOI issue or a carrier issue, but in NY, all carriers handle it the same.

 

[Mr_Ed]

He's not talking about replacing a policy.

It sounds like he's a career agent with JH.

When I was a career agent with them, we could be put down as the "agent of record" to service older LTCi policies. In those cases we would get half the renewals going forward.

nadm

 

[CALTCAgent]

If you have a client who has a JH LTC policy and you make a change to it, do you become the agent of record and start getting renewals on those?

1. Captive or independent agent? (Independent = NO)
2. Whats the change?

 

[russelltw]

sorry for the delay.

I am captive with JH as LTC option. Looking at option to move indy, wrote a rather large policy that would like to carrier policy iwth me if possible.

 

[Mr_Ed]

sorry for the delay.

I am captive with JH as LTC option. Looking at option to move indy, wrote a rather large policy that would like to carrier policy iwth me if possible.

If you become independent you will lose all your renewals (unless you were vested already.) It usually takes 10 or more years to become vested, so you'd probably lose all your renewals.

 

[CALTCAgent]

sorry for the delay.

I am captive with JH as LTC option. Looking at option to move indy, wrote a rather large policy that would like to carrier policy iwth me if possible.

Thats simple. Get out your captive contract and read it and weep.