I do prospect for new business. I don't roll my clients or wholesale replace others either.
KSKJ info needed
- Thread starter mudhound
- Start date
After reading this again, I find it interesting that you jumped to the conclusion that I was trying to justify an agent rolling his own business instead of questioning the reasoning used to justify the wholesale replacement of in force coverage written by other agents.
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I thought it was sarcasm when I read it. Although it is a perfectly valid question.
Why is it ok to replace a higher priced policy when you didn't sell the original policy, but not ok when you sold the original policy?
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I also thought you were being sarcastic. I guess Newby doesn't know humor when he sees it.
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When your IMO is built around this one concept, you seem to take things personal.
Nevertheless, most agents cant afford to sell the cheap fraternal stuff since they pay as-earned anyway. Most small carriers dont have the bankroll to advance that much cash.
So could an agent write Oxford, get an advance, and replace with KSKJ in the 13th month? I bet this happens much more than anyone would care do admit.
Maybe some agents are trained to do this.
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The way you were asking the question didn’t sound like you had a grasp on it. With your years in the biz that would be surprising.
Yes you are doing it right. Agents that go flip their biz do not usually last long.
I’m not sure what your definition of “wholesale replacing” of competitors is though. Basically if a prospect is looking for more insurance or better rates in what they have, and I can give them enough savings that it makes sense, I’m going to offer it.
There are agents way more aggressive than me with them. And there are agents thst are way more conservative. Some will never replace any policies. I’m pretty sure I have it right. But everyone has to do what they believe in.
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I do think Louis's point has some merit, and he is not the only one to have brought this up with respect to KSKJ. If you have client's paying, in some cases, $15 to $20/month (or more) higher premium with a carrier than you could get them with KSKJ, is it wrong to go back and offer them the chance to apply for that savings (or, better yet, a significantly higher death benefit).
I'm not doing it, but I Have KSKJ, and I have clients who would likely jump at the chance to pay the same for $5000 more coverage or pay $15/month less for the same. Is it not somewhat of a moral dilemma for the agent?
Take commissions out of the discussion: If the only one who stood to benefit was the client, what would be the right thing to do?
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There you go with your pointed assumptions again NSRH. You can never accept that agencies can sell good business and focus on price.
Oxford, KSKJ and Trinity are all thrilled with our persistancy as are all of our companies. And we have finished in the 1st or 2nd position (volume of business) with all three of them for four straight years.
Now AmAn on the other hand...,
Not anything new.. has been going on as long as I have been in the business and probably since the start of the industry (that does predate me by a few years) It was really done when Med Supp paid a front loaded commission.. Agents would write United American this year, Pioneer the next, The AI and then maybe go back to UA...
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It is never ethical to proactively flip your own book of WL. Med Sups and term conversions are fine. But not WL. And no one is working a competitors book either. They are working leads that are actively looking for something.
If your current client is actively responding to a lead which happens on occasion you have to make a judgement call. But if you always write very competitive companies to start with you could rarely put them in a better position than you could the first time.
When you focus on low premiums its easy finding competitor’s products you can beat. You don’t need to work your own customers over.
I’m pretty sure the agencies that train their agents to flip their books are not the agencies that train their agents to sell the lower priced companies. Those agencies wouldnt last long.
