- 17,069
In Indiana I'm the same way but in Kentucky it's the opposite. Non contestable as long as you filled out the forms.
My First Death Claim
- Thread starter Rearden
- Start date
In Indiana I'm the same way but in Kentucky it's the opposite. Non contestable as long as you filled out the forms.
- 15,041
Do many companies refuse replacement because of that rule?
- 2,452
What was the face amount and age? Just curious.
- 19,635
Several will not do replacements in Ky. I know that AmAm, LH and Settlers won't allow replacements in Ky. Shenandoah wouldn't when they were in business.
There's probably more that won't. Some of them seem to not know about the rule and only realize it when there is a calim and then they stop doing replacements. AmAm did replacemtns here until a bout two years ago. We got an email one day that said, "effective immedaitely we will not issue a policy in the state of Ky that involves replacement".
Don't know what prompted it. Must have had a claim?
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You never know what goes through people's minds. I did a pretty good sized deal today, about $140/mo premium. Did one with the POS interview and everything went along fine. Pretty good guy. he and I hit it off well. Replaced a Globe policy.
As I was going down the steps to leave he says, "now, if I pull out a gun and blow out my brains tomorrow you will see that my son gets that $25000?".
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- 2,452
Several will not do replacements in Ky. I know that AmAm, LH and Settlers won't allow replacements in Ky. Shenandoah wouldn't when they were in business.
There's probably more that won't. Some of them seem to not know about the rule and only realize it when there is a calim and then they stop doing replacements. AmAm did replacemtns here until a bout two years ago. We got an email one day that said, "effective immedaitely we will not issue a policy in the state of Ky that involves replacement".
Don't know what prompted it. Must have had a claim?
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You never know what goes through people's minds. I did a pretty good sized deal today, about $140/mo premium. Did one with the POS interview and everything went along fine. Pretty good guy. he and I hit it off well. Replaced a Globe policy.
As I was going down the steps to leave he says, "now, if I pull out a gun and blow out my brains tomorrow you will see that my son gets that $25000?".
Pretty funny. Did you sell him RNA?
- 3,165
Several will not do replacements in Ky. I know that AmAm, LH and Settlers won't allow replacements in Ky. Shenandoah wouldn't when they were in business.
There's probably more that won't. Some of them seem to not know about the rule and only realize it when there is a calim and then they stop doing replacements. AmAm did replacemtns here until a bout two years ago. We got an email one day that said, "effective immedaitely we will not issue a policy in the state of Ky that involves replacement".
Don't know what prompted it. Must have had a claim?
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You never know what goes through people's minds. I did a pretty good sized deal today, about $140/mo premium. Did one with the POS interview and everything went along fine. Pretty good guy. he and I hit it off well. Replaced a Globe policy.
As I was going down the steps to leave he says, "now, if I pull out a gun and blow out my brains tomorrow you will see that my son gets that $25000?".
Wow JD, funny....yet not so funny! Well, all u can do is "do the right thing", and Im sure u did...so enjoy your $1200 or so commission bruh! Oh, u might not wanna spend all of that right away tho, lol!
- 17,069
Lincoln Heritage, Settlers, GPM Life and Shenandoah are the only ones I've noticed.
They still get agents replacing though. They just don't fill out the replacement forms. The agent is open to a whole lot of liability if he doesn't fill those forms out in Kentucky and someone dies in the 1st 24 months.
- 8,707
Good god, I know we don't have the luxury or horror of a law like that...But what goes through an agents minds when they intentionally not do paperwork so they can slip a sale through a carrier but by doing so leave the client open to a 2 year contestability period they didn't need to have.
- 19,635
That's not what he is saying. Personally I love the Ky law. But that's another subject.
If the agent writes a policy in Ky that is a replacement and writes it with a company that does not do replacements in Ky they cannot send in a replacement form or the policy won't get issued.
I didn't know that Shandoah didn't do replacements here and about 7 years ago I sent in an application with replacement forms to them. They sent everything back to me saying they would not accept it.
Now, had I known that and wanted to just get the policy issued I could have checked "no" on the replacement question and the policy would have been issued.
If the person had dies i the contestability period Shenandoah would have found out that that they could not contest it because of the law. It wouldn't matter that the agent had not done the forms. The law supercedes the agent's actions.
I would than be in real hot water. I would definately lose my contract with Shenandoah and maybe my license completely. I don't know if E&O would cover me. I suppose they would if I didn't know they replacing? That's why we have to send in a replacement form in Ky with every app if they have insurance. Even if they are not replacing we have to note that they do have insurance and it's not going to be replaced. The client has to sign that form indicating that they are not replacing and we have to give them a copy of it.
Do agents do replacements in Ky and not follow these rules? Yes, they do. Most of the time they don't get caught because the person lives 2 years or they claim was one that would have been paid regardless.
Newby and I know of a guy that replaced an LH policy that he had written with a Settlers policy, {they don't do replacements here}, and the guy died about a month later. Settlers was going to contest and found out they couldn't. That agent is in deep shat!
I don't even know what all is going to happen to him. he can't write business with anyone at the present. I can't imagine that his E&O will pay as he had to know he was replacing business. He has claimed to the Dept. of Ins that he did not know. But, com'on, he wrote the replaced policy.
That's not what he is saying. Personally I love the Ky law. But that's another subject.
If the agent writes a policy in Ky that is a replacement and writes it with a company that does not do replacements in Ky they cannot send in a replacement form or the policy won't get issued.
I didn't know that Shandoah didn't do replacements here and about 7 years ago I sent in an application with replacement forms to them. They sent everything back to me saying they would not accept it.
Now, had I known that and wanted to just get the policy issued I could have checked "no" on the replacement question and the policy would have been issued.
If the person had dies i the contestability period Shenandoah would have found out that that they could not contest it because of the law. It wouldn't matter that the agent had not done the forms. The law supercedes the agent's actions.
I would than be in real hot water. I would definately lose my contract with Shenandoah and maybe my license completely. I don't know if E&O would cover me. I suppose they would if I didn't know they replacing? That's why we have to send in a replacement form in Ky with every app if they have insurance. Even if they are not replacing we have to note that they do have insurance and it's not going to be replaced. The client has to sign that form indicating that they are not replacing and we have to give them a copy of it.
Do agents do replacements in Ky and not follow these rules? Yes, they do. Most of the time they don't get caught because the person lives 2 years or they claim was one that would have been paid regardless.
Newby and I know of a guy that replaced an LH policy that he had written with a Settlers policy, {they don't do replacements here}, and the guy died about a month later. Settlers was going to contest and found out they couldn't. That agent is in deep shat!
His only defense is that the insured, at the time of application, told him he was going to keep both policies. But, that wouldn't work if he did not indicate on the application that there was another policy in force.
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