Replacement Business

[jdeasy]

I don't track that kind of minutia but I'm sure it's well over 50% replacements.

But I don't find replacement to be bullet proof, except mine. Most of what I replace were replacements themselves it seems.

Again, I don't track it but it feels that way.

I work leads. Those people had that coverage when they mailed in the card. They are looking for better. Usually I can provide better.

SL is a very easy replacement. I've replaced every SL I've run across. I wish they did more business. Probably replace 99% of LH. Don't find enough of them either.

AARP, CP, Bankers, OA, PM, any of the AmAm products, mofo's GI sold to healthy people, etc. are all replacement fodder.

Love finding them. It seems my most replaced company over the last 3-4 years is Assurant/AmMem. Mostly because I find more of it.

 

[theinsuranceman]

And here he is again twisting. He didn't like that he was proven wrong and so he's going to try and twist it into another argument. Greg, you're such a tool!

Todd, it's much better to be a tool than a fool...lol.

 

[rousemark]

Back in the day, the Life Insurance Association preached against replacement and all the agents swore they did not do replacements ... But when you got into their houses you found a different story.. My Staff Mgr was considered a replacement artist and everybody's business was fair game.

 

[shonceman]

Back in the day, the Life Insurance Association preached against replacement and all the agents swore they did not do replacements ... But when you got into their houses you found a different story.. My Staff Mgr was considered a replacement autist and everybody's business was fair game.

Back in the 90's, I was on the ethics committee of our local NALU chapter. We definitely considered replacement as generally unethical. To this day, I'm reluctant to replace unless there is a compelling reason.

My compelling reasons include:
- Client has term insurance intended for Final Expense
- Client has underfunded UL.
- Client was written a GDB when they could have qualified for Standard or better.
- Agent clean sheeted the app.
- Client has significant loan balance and may be in danger of overloan lapse.
- Premium on existing policy is SIGNIFICANTLY higher than what I'm offering. (I'm still fairly cautious on this, especially if outside contestability.)
- Another agent replaced me, but did the client a disservice by doing so, and maybe even lied to get the sale. I'll save my business if possible, and therefore "replace" his replacement.

Here are some reasons that are not compelling for me:
- I can offer a little lower premium (or a little more coverage).
- I can get the client some $ by surrendering their policy.
- Client doesn't have enough coverage, so I rewrite his whole program instead of just writing the additional needed coverage.
- I'm down to my last lead and haven't gotten a sale yet!
- I just don't like the other agent, or the company!

All that being said, I'm not questioning anybody else's reasons for replacing. I sometimes encounter what I might consider questionable replacements, but even then I assume that I may not know what the compelling reason was for that particular replacement.

 

[Fire]

I don't track that kind of minutia but I'm sure it's well over 50% replacements.

But I don't find replacement to be bullet proof, except mine. Most of what I replace were replacements themselves it seems.

Again, I don't track it but it feels that way.

I work leads. Those people had that coverage when they mailed in the card. They are looking for better. Usually I can provide better.

SL is a very easy replacement. I've replaced every SL I've run across. I wish they did more business. Probably replace 99% of LH. Don't find enough of them either.

AARP, CP, Bankers, OA, PM, any of the AmAm products, mofo's GI sold to healthy people, etc. are all replacement fodder.

Love finding them. It seems my most replaced company over the last 3-4 years is Assurant/AmMem. Mostly because I find more of it.

Jd's in Kentucky which means the contestability clock is already running when he replaces . So if a policy 2 plus years old it's paying the claim . If it's 18 months old it's only 7 months to incontestability. CO's have big liability on early death claims . Trinity just stood up and said no more replacement business in Kentucky and several other like states .It tells me their early claims higher in those states .

 

[jdeasy]

Jd's in Kentucky which means the contestability clock is already running when he replaces . So if a policy 2 plus years old it's paying the claim . If it's 18 months old it's only 7 months to incontestability. CO's have big liability on early death claims . Trinity just stood up and said no more replacement business in Kentucky and several other like states .It tells me their early claims higher in those states .

There a re few companies that don't allow replacements in Ky, Kansas and WV. But the vast majority do. Trinity is not allowing on FE but still allows on FU. Kinda weird I think. It's not big an issue. Now I do more than 50% of my business in Ky. Before FEX I did 70% plus of my business in Indiana. Mostly because my prior IMO had a hard time getting leads for me in Ky. I write a fair amount in Tn and Il.

Trinity won't affect me either. I've written 2 Trinity apps this year. Neither were replacements.

 

[Newby]

Jd's in Kentucky which means the contestability clock is already running when he replaces . So if a policy 2 plus years old it's paying the claim . If it's 18 months old it's only 7 months to incontestability. CO's have big liability on early death claims . Trinity just stood up and said no more replacement business in Kentucky and several other like states .It tells me their early claims higher in those states .

Probably the best thing that could happen to the FE biz would be if every state did not allow new contestibility on replacement biz. And along with that all companies underwrote a little more on replacement biz. Check things on the way in not at the death claim.
I told Alvin at Trinity that he will still get the worst replacement biz in KY because the crooked agents don't do replacement forms anyway. But the company is still fully liable on those death claims.
I (as a funeral director) helped a family collect on a clean sheeted Settlers policy that was an obvious replacement but had no replacement form. The guy died one year in. Not having replacement forms in KY doesn't exempt a company from the replacement KY law.

 

[Real_AMG]

the crooked agents don't do replacement forms anyway.

How do these people get away with this kind of thing without at least getting termed? I had a buddy lose his Indiana license bc he replaced a Med Supp and mistyped the effective date and both were active for like a week. Sometimes it seems like there's no justice for the ones who are actually shady.

 

[goillini52]

How do these people get away with this kind of thing without at least getting termed? I had a buddy lose his Indiana license bc he replaced a Med Supp and mistyped the effective date and both were active for like a week. Sometimes it seems like there's no justice for the ones who are actually shady.

That's hard to believe they'd cancel his license for that. Must be more to the story.

 

[goillini52]

As I understand you have a business in passenger transportation? If I were you, I'd be concerned about another issue - fuel cost management is the critical point. It's no secret that about 50% of carriers' expenses are fuel.