Replacement, or not, question

[VolAgent]

If he has already cancelled the existing policy, what is there to replace? Is he wanting to replace the first policy he had with company A too?

Many states consider it a replacement if the policy was cancelled prior to the application.

 

[slacker]

Many states consider it a replacement if the policy was cancelled prior to the application.

 

[slacker]

And my state contact said that they "could" consider it a replacement for a number of years although he also said he didn't think they would have any problem with it if they ever got involved, per his voice mail that I will keep

 

[Todd King]

Many states consider it a replacement if the policy was cancelled prior to the application.

True, but only for as long as the old policy could be reinstated. Not that we should ever make someone wait that long before actually taking out a new policy.

Ignorance of the other policy's existence sure would come in handy right now! LOL

 

[slacker]

If he has already cancelled the existing policy, what is there to replace? Is he wanting to replace the first policy he had with company A too?

 

[VolAgent]

True, but only for as long as the old policy could be reinstated. Not that we should ever make someone wait that long before actually taking out a new policy.

Ignorance of the other policy's existence sure would come in handy right now! LOL

Took the words right out of my mouth. If only the prospect didn't have such a big mouth, then slacker could plead ignorance.

 

[slacker]

Todd-he isn't replacing first policy, way past contestability, having a little difficulty with this process of posting

 

[Todd King]

Todd-he isn't replacing first policy, way past contestability, having a little difficulty with this process of posting

A conundrum at best! Go by the rules and the client gets screwed. Circumvent the rule and you may get screwed.

If Vol really knows that letter would work (if you needed it), then I would follow that advice. Either that or let the guy know you'll be back in a couple of months to write him up without the replacement.

One other possibility. If he were to reinstate it, and tells you he is not going to replace it, then you're back at square one. Write him up. What he does with that policy after you write it is something you can't control. He he states at that time he has no intentions or replacing it, then you're golden.

 

[VolAgent]

A conundrum at best! Go by the rules and the client gets screwed. Circumvent the rule and you may get screwed.

If Vol really knows that letter would work (if you needed it), then I would follow that advice. Either that or let the guy know you'll be back in a couple of months to write him up without the replacement.

One other possibility. If he were to reinstate it, and tells you he is not going to replace it, then you're back at square one. Write him up. What he does with that policy after you write it is something you can't control. He he states at that time he has no intentions or replacing it, then you're golden.

I don't know that it would or would not work, but were I in this situation and wanted to proceed, I would start with that. Sadly the letter is effectively an admission that a replacement happened. Now you are trying to explain why you did it and why you felt it was in the best interest of the insured.

Also yes, if he tried to reinstate the policy, then it is not a replacement. That he lapsed it 2 months later of his own volition is a moot point.

 

[HoosierLife]

I know what most people would do.