But the agent will continued to get renewals, so there is compensation. Not sure if the courts would call it direct or indirect though. Are you saying it would be indirect? The other thing that comes to mind is saying that the agent only receives the renewals because the policy was sold....actually, going to stop right here...I think I'm diving too deep!
Looking to Buy Your FE Plans - Prevent Chargebacks to Agent
- Thread starter rousemark
- Start date
But the agent will continued to get renewals, so there is compensation. Not sure if the courts would call it direct or indirect though. Are you saying it would be indirect? The other thing that comes to mind is saying that the agent only receives the renewals because the policy was sold....actually, going to stop right here...I think I'm diving too deep!
- Thread starter
- #22
Yeah.. we are getting t the point we are having to tread water as neither of us knows for sure what we are talking about...
Pure speculation on my part..hfa8802
New Member
Gentlemen, very good discussions but you are thinking way to much. The Life Settlement business has been around since the 80's all be it in the early days there were a lot of people that did not do the right things and thankfully they are no longer around. An FE policy is just a lower face amount on a whole life policy.....Agents are the #1 Referalls source to Life Settlement Companies as they have the relationship with the client. You will see Coventry Direct on TV and they are trying to go direct to consumer and keep from have to include the agent. Life Settlement is regulated, the courts acknowledge it and the carriers know and are fine with it. There is an association that exists as well and has been around a long time Life Settlement Insurance Association (LISA) and please feel free to search it as there is a lot of educational materials as well. My only problem with this section of the Life Insurance Business is getting the education out to the agents and brokers so we are able to offer our clients options to lapse, cancel, surrender, etc....
- 5,936
Yes, but wouldn't you have to provide information to someone the client hasn't given permission to receive? Could that be considered at a minimum breach of trust?
- Thread starter
- #25
You could either give the settlement company's number to the client or ask the client if they would like for you to tell the SC to get in contact with them. Either way you have not violated any privacy issue. If the company is not paying you anything for the referral, they don't even have to know who the agent is so it would make no difference how they are contacted.
- 4,872
This sounds suspicious to me. Why doesn't he go direct to the insurance carriers?
- Thread starter
- #27
The insurance carriers could not release the names of their policyholders that are about to lapse even if they wanted to. HIPPA violations. The agent can't either without the insureds permission. Viatical Settlement Companies do not go straight to the carriers..
- 30,588
Also, the policyholder is still the owner, etc., because the policy hasn't lapsed yet.
tikibarrister
Guru
- 506
So when do you introduce this in the sales cycle?
Up front? If you're ever thinking about cancelling...
Or, "There is a cash out option for this policy. If you decide you no longer want it, you can receive up to $500 cash by calling..."
After you try to save a lapsed policy, as a last ditch?
Or in preference to saving a lapsed policy, because you're locking in your commission?
Up front? If you're ever thinking about cancelling...
Or, "There is a cash out option for this policy. If you decide you no longer want it, you can receive up to $500 cash by calling..."
After you try to save a lapsed policy, as a last ditch?
Or in preference to saving a lapsed policy, because you're locking in your commission?
- Thread starter
- #30
My thought would be after you try to save it, trying your best to do what is best for the client, and you see there is no hope..... still trying to do the best for your client because at least they get something where they were getting nothing by just letting it lapse. If there is cash value, it is my understanding theta would be required by law to offer more than that cash value so it still would do the best for the client intent on lapsing.. Again, I am just speculating on what I understand the proposal to be. YMMV
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