Table Shaving?

[Krono]

For you LI pros:

I have a situation where I will be competing for a 10 year term policy.

My competitor is another agent that sold the client a Penn Mutual COLI policy a few months ago, and the client was rated a table 4 at that time.

Now the client wants a personal policy.

The other agent (that sold him his COLI) is now quoting a standard rating on this personal policy...and is claiming he can do so by using the Penn Mutual "table shaving" program.

Can you table shave on a term policy? Does this make sense? I don't know much about table shaving other than many carriers don't do it.

Thanks in advance.

 

[Krono]

Any takers?

 

[bluemarlin08]

Table shaving use to be more prevelant but I rarely see it today. Don't be fooled however, a "standard" with PM may not be as good as a rating with another company. If you have a good brokerage firm you should be able to give them the facts in the case and they could send the information to several companies and get some preliminary quotes, don't see PM pop up as a competitive player in the market.

 

[Marpol]

I have to agree with Blue....Penn really does not look too competitive these days. Most carriers are not table shaving anymore. Some have some type of point system for good habits that can get you a little better rating but those are not a true table shave. Only a few left that will actually do it. I do not believe term qualifies for table shaving.

 

[bill3173]

I do not believe term qualifies for table shaving.

Term qualifies for table shaving, and the best company for that is AIG Life Brokerage. If you have a table rated case, particularly face amounts greater than $250K, AIG is almost impossible to beat.

 

[Marpol]

Term qualifies for table shaving, and the best company for that is AIG Life Brokerage. If you have a table rated case, particularly face amounts greater than $250K, AIG is almost impossible to beat.

AIG currently does not have any table shaving programs for Term or Perm. The only carrier that offers a term table shaving program is Met.

I believe what Bill is referring to though is the fact that AIG's substandard extra premiums are applied to a Special Nontobacco or Special Tobacco rate. This makes AIG very very competative for table rated term cases. The only other carrier that may be able to compete is Banner who does a similar thing. But this is not table shaving.

 

[bill3173]

I believe what Bill is referring to though is the fact that AIG's substandard extra premiums are applied to a Special Nontobacco or Special Tobacco rate. This makes AIG very very competative for table rated term cases. The only other carrier that may be able to compete is Banner who does a similar thing. But this is not table shaving.

Yes, it is not a true table shaving, but is essentially the same thing, particularly if the cases are rated 4 or more tables. A table 6 with AIG is priced like a table 4, slightly less actually.

Security Mutual Life of NY did have a true table shaving program on term products a few years ago, don't know about now.

 

[JMO Fan]

Table shaving results in lower rates for an insured than others in the same risk class. That makes it unfair discrimination (and rebating in most states). Just saying.