- 924
The fact that there is a rule like this is insane.
Replacement, or not, question
- Thread starter slacker
- Start date
This rule unfortunately exist because of the action of other agents in the past.
The way to fix this is to follow in the footsteps of ky and in replacement situations the contestability period doesn't start over. Let the companies decide if they will accept replacements not the state.
- 19,666
The states don't decide about replacements. They make the rules for the state but they don't tell companies if they can or cannot accept replacements.
The state simply says if the policy is a replacement, the company will have to pick up the contestable period of the old policy. The company makes the decision if thy want to do that or not. Some do, some don't but it is not the state making the decision. The reason for it is some agents were constantly rolling their business for new first year commission causing the client to always be in the contestable period.
- 19,666
It wasn't because of agents that the Ky statute came into being.
Why do you always blame the agents?
- 19,666
You didn't answer the question.- 19,666
