Policy Fee Question.

[TDFnCali]

Yes and no.

Yes they have a very liberal (IMO) graded and a Modified (not GI). But the also have tightened up the app in now all but three states and lowered the rates.

The Modified will not work for you as it can only be a percentage of all business written. I think you have to have 5 PWL and/or GBWL to write one modified. I use it but am very picky on who I send them on Modified.

I think you are looking for GI, high first year comp with nice renewal, no unearned charge back, no requirement for clean business (adverse selection). Is that close?

No, not really....I understand there's only a few TRUE GI's out there. CSA's wasnt a GI, but I was going to use them, prices were good & they only have a few knockout questions- most of which I never come across.

So while I would love another GI which a diff charge back policy, a ROP with only 1-3 questions would work too.

Ive read a few agents on here use UHL's EI for that, but the knock out questions on that would knock most of my modified/GI biz out...so looking for others!

 

[WinoBlues]

No, not really....I understand there's only a few TRUE GI's out there. CSA's wasnt a GI, but I was going to use them, prices were good & they only have a few knockout questions- most of which I never come across.

So while I would love another GI which a diff charge back policy, a ROP with only 1-3 questions would work too.

Ive read a few agents on here use UHL's EI for that, but the knock out questions on that would knock most of my modified/GI biz out...so looking for others!

I appreciate you doing all the leg work. I hope when you find it you will let us know.

Lee

 

[Todd King]

Lee, whats the company u mentioned awhile back, UH I think? Do they have a graded or modified plan?

Can you send me their info again if they do, thanks!

Columbian was too high & Todd said CSA wouldnt like me only submitting ROP biz, lol!

When you said that you would only submit modified plans to CSA, I said they probably wouldn't like that. I didn't want to make you think they wouldn't like any of it.

 

[Newby]

Thanks Lee!! Do you happen to know what any of the companies I mentioned charge? Or who might have the highest/lowest policy fee.

Settlers is a company that has no policy fee at all if that's what you are looking for.

The consumers don't care about policy fees. If you quote $30 monthly, they don't really care how much of that $30 is policy fee. Agents usually don't care as long as the fee is commissionable which most but not all FE companies are.

Where a policy fee comes into play is in the size of the policy. A company with no fee will be much more competitive on small policies $5,000 or less than a company with a large fee. As the policy quoted is larger, the fee is less and less a factor of the premium quoted.

If you play around on fexquotes and pull up a $3,000 face amount on any given age, Settlers should be one of the most competitive companies. But if you quote $20,000 on the same age, settlers will be less competitive. This is because of the effect of no policy fee. They lose their advantage when the amount is larger.