- 26,137
Is Jed Elmer's brother...or Bertha Mae's brother?
Yes
Looking to Buy Your FE Plans - Prevent Chargebacks to Agent
- Thread starter rousemark
- Start date
Yes
- 26,137
Doubt, they are going to offer $500 for a one month old plan.. more like $50..If you stay away from the KKKSJs you don't have to worry about the first scenario.
You have to admit that it would be a way to churn a book. Not even sure if you would need a replacement form.
- Thread starter
- #43
why would you? The original policy remains in force, unchanged as to coverage...
- 30,588
Because his policyholder now has $500(until he goes to the licquer store)and he's no longer paying a premium, so he can afford another policy. Do this every couple of months and he's got lots of life insurance and he drinks for free.
Great idea Wino.
- 26,137
I would not. However, the FE guys that live by replacing policies would. While the original policy stays inforce the owner and beneficiary is now the settlement company, not Mrs insured. Also, if this was a lapsing policy the insured still has some coverage.
Carriers don't have that much of a vested interest in conserving policies. But agents do.
The life settlement market is usually agent driven.
Policies in the contestable period are classified as non-conforming settlements. Beyond the contestable period they are conforming settlements.
Many (most?) settlement companies pay a finders fee to referring agents.
Check your E&O policy. I doubt there is protection for agents that make settlement referrals regardless of whether there is a finders fee or not.
FE is not my market but I am aware that churning is part of the game. It doesn't seem to me that "replacing" a policy that lapsed due to non-payment is a good market. Same could be said for policies that were sold to a settlement company while in the grace period.
The life settlement market is usually agent driven.
Policies in the contestable period are classified as non-conforming settlements. Beyond the contestable period they are conforming settlements.
Many (most?) settlement companies pay a finders fee to referring agents.
Check your E&O policy. I doubt there is protection for agents that make settlement referrals regardless of whether there is a finders fee or not.
FE is not my market but I am aware that churning is part of the game. It doesn't seem to me that "replacing" a policy that lapsed due to non-payment is a good market. Same could be said for policies that were sold to a settlement company while in the grace period.
- Thread starter
- #47
SNL is proactive in trying to conserve business.. I think they even make a phone call to the client from the HO.
- Thread starter
- #49
Probably no deadbeats... But may save some that overlooked their payment, etc. I have only had one lapse with them....It was a case where her husband's son was paying the premiums… When she and her husband split, he quit paying on hers but still has the father's plan. SNL did call him in an attempt to save it.. That is more than most companies will do to help you conserve your business.
- 4,872
Carriers don't have that much of a vested interest in conserving policies.
Who told you that? I believe FE carriers care very much about keeping business on the books. After all, it takes a policy staying on the books 2-3 years for them to start showing a profit.
Who told you that? I believe FE carriers care very much about keeping business on the books. After all, it takes a policy staying on the books 2-3 years for them to start showing a profit.
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