Procedures for Re-marketing Policies

[Jonathan Nelson]

I have heard some horror stories regarding re-marketing policies, especially when it's external. I was wondering if I could get some ideas on how other agents combat this.

In case you're wondering what I am talking about, there is a true story about an agent who wrote a homeowners policy for a client that was originally with Met Life. The policy this agent provided was better in that it had higher liability coverages and endorsements. There was one problem though, the new policy did not include volunteer professional liability. So, a few months after the client switched companies/policies, he designed a teepee for a local boyscouts club that failed and resulted in a massive lawsuit. The agent was basically on the hook here because he never conveyed this difference to the client.

I actively check both policies and let the client know if any differences exists. I usually document such conversations on my cms but now I am beginning to wonder if I should ask them to sign a form that acknowledges their understanding. Basically, to cover my ass!

So if anyone cares to share their re-marketing procedure, I would really appreciate it! Thanks.

 

[Nick321]

Anytime you change carriers for someone you run this risk.

My thoughts on this are to always document the process and why you are switching carriers. For instance "Client said, I want a cheaper premium even if you have to reduce my coverage." DOCUMENT, DOCUMENT, DOCUMENT.

A good idea is to make a check list of their current coverages and compare that to the new carrier.

I would also avoid making claims this is "apples to apples" as this is unlikely as each carrier is different. Clients will try to get you to make this claim and I would avoid it.

Make sure they understand this coverage is similar but not exactly the same. Clients need to be educated as well that they have a responsibilty to understand what they are buying. A good way to do this is get them a specimen policy to review when they find something they want to buy. You might even recommend they have a trusted advisor review it if they don't understand what they are looking at. Send them an email with the specimen and save it in a file.

I run into a lot of folks who refuse to show you their existing policy and only will give you the declaration page so you need to document stuff like that.

Sooner or later you will have someone pull this so make sure you protect yourself. Take your time, don't rush, over document everything and you will hopefully avoid this from ever happening.

Create a process, handle every client the same as far as process goes and don't cut corners on the process part. Hold everyone to the same standard and hopefully, you will avoid this stuff from happening.

 

[Jonathan Nelson]

Anytime you change carriers for someone you run this risk.

My thoughts on this are to always document the process and why you are switching carriers. For instance "Client said, I want a cheaper premium even if you have to reduce my coverage." DOCUMENT, DOCUMENT, DOCUMENT.

A good idea is to make a check list of their current coverages and compare that to the new carrier.

I would also avoid making claims this is "apples to apples" as this is unlikely as each carrier is different. Clients will try to get you to make this claim and I would avoid it.

Make sure they understand this coverage is similar but not exactly the same. Clients need to be educated as well that they have a responsibilty to understand what they are buying. A good way to do this is get them a specimen policy to review when they find something they want to buy. You might even recommend they have a trusted advisor review it if they don't understand what they are looking at. Send them an email with the specimen and save it in a file.

I run into a lot of folks who refuse to show you their existing policy and only will give you the declaration page so you need to document stuff like that.

Sooner or later you will have someone pull this so make sure you protect yourself. Take your time, don't rush, over document everything and you will hopefully avoid this from ever happening.

Create a process, handle every client the same as far as process goes and don't cut corners on the process part. Hold everyone to the same standard and hopefully, you will avoid this stuff from happening.

Thanks for the advice! I know some agents require their new insured sign a form that essential says "No policy is the same and I understand it's up to me to know the difference". I am curiose as to how many agents do this! I agree though, a lot of clients either don't have their current policy or refuse to show it for whatever reason.

 

[newlife]

I have heard some horror stories regarding re-marketing policies, especially when it's external. I was wondering if I could get some ideas on how other agents combat this.

In case you're wondering what I am talking about, there is a true story about an agent who wrote a homeowners policy for a client that was originally with Met Life. The policy this agent provided was better in that it had higher liability coverages and endorsements. There was one problem though, the new policy did not include volunteer professional liability. So, a few months after the client switched companies/policies, he designed a teepee for a local boyscouts club that failed and resulted in a massive lawsuit. The agent was basically on the hook here because he never conveyed this difference to the client.

I actively check both policies and let the client know if any differences exists. I usually document such conversations on my cms but now I am beginning to wonder if I should ask them to sign a form that acknowledges their understanding. Basically, to cover my ass!

So if anyone cares to share their re-marketing procedure, I would really appreciate it! Thanks.

I always make sure they sign all apps and sign off on any coverage changes

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