TransAmerica-Sets Aside $for Future PayOut?

[NSRH]

That has nothing to do with companies wanting to do telesales. Companies are hoping that someone will perfect the direct to consumer sales for FE so they can get rid of agents.

So, what's the percentage difference of contestable claims paid that done completely by phone vs an agent involved with or without a phone interview?

Ive never heard that angle. You'd still have to be licensed to sell, so how would you get rid of the agent? Also, there are still a lot of debit agents around, I dont ever see the need for face to face agents being totally gone. Do you?

But the control issue is totally and 100% why insurance carriers are moving to telesales. There is no denying that, I know it from first hand conversations.

Also, I never commented on contestable claims, I have no idea what those numbers are, nor do I care. Ive never had an issue with American Amicable paying out claims, not once, but I cant speak for other carriers. My comment was directly about white sheeting and fraud, which you have conveniently ignored.

Out of curiosity, what is your gripe about telesales? You've called it a failed business model multiple times. Why are you so against it? Just wondering.

Id honestly like to hear your side.

 

[VolAgent]

It doesn't matter how honest/dishonest the agent/proposed insured is in the tele-sales/field sales. ALL FE companies will do a medical records search if the proposed insured dies in the 2 year contestability period.

What you are all arguing about is a mute point.

Dead wrong, it has a huge impact. Dishonesty can lead to a policy being issued that should not have been, which results in a denied claim.

I could really turn your statement around on you.

 

[NSRH]

It doesn't matter how honest/dishonest the agent/proposed insured is in the tele-sales/field sales. ALL FE companies will do a medical records search if the proposed insured dies in the 2 year contestability period.

What you are all arguing about is a mute point.

Does it matter if the agent lied and the client lived two years and one day?

 

[Agentguy5]

 

[theinsuranceman]

Does it matter if the agent lied and the client lived two years and one day?

Of course it matters. It would also matter if the proposed insured lies too. If you read my post carefully, you'll see I'm only talking about the 2 year contestable period, nothing else.

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Of course it matters. It would also matter if the proposed insured lies too. If you read my post carefully, you'll see I'm only talking about the 2 year contestable period, nothing else.

Doug, would you please pass the popcorn? lol

 

[BibH]

I run into a ton of policy's were the agent lied but the policy is over 2 yrs old. I just walk on those.Speaking of Trans what this thread is about wow the service went to pots. 1 hr to get new business on the line today and 35 min's for customer service. Before the last few weeks i never waited over 3-5 min's for customer service . Since the Fe product is so popular i smell a rate increase coming then all will bolt like Aetna

 

[donamese]

Yes, but if the guy was right about the 40%, and I have no way of knowing if he's right, there's no way that 60% is on the agents.

60% would not be all on the agents as clients can be deceptive as well. However, a bad agent can put a big number up pretty quick. If you clean sheet everyone you see, you can write much more than a quality agent so it is pretty easy to stack up the numbers.

Everything is priced and the underwriting is based on the projection of when the person would die. Quality agents are not writing people expected to die in the next 2 years as they wouldn't qualify. Bad agents are writing the unhealthy and trying to push them past the underwriting. Naturally the numbers will skew in favor of the bad agents. The 40% paid claims in the contestability period isn't based on total policies, it is based on policies where there was a death in the first 2 years. A good agent should have minimal of these.

I looked in the LIC FE survey but they do not give rescission percentages for the industry.

 

[jdeasy]

Ive never heard that angle. You'd still have to be licensed to sell, so how would you get rid of the agent? Also, there are still a lot of debit agents around, I dont ever see the need for face to face agents being totally gone. Do you?

But the control issue is totally and 100% why insurance carriers are moving to telesales. There is no denying that, I know it from first hand conversations.

Also, I never commented on contestable claims, I have no idea what those numbers are, nor do I care. Ive never had an issue with American Amicable paying out claims, not once, but I cant speak for other carriers. My comment was directly about white sheeting and fraud, which you have conveniently ignored.

Out of curiosity, what is your gripe about telesales? You've called it a failed business model multiple times. Why are you so against it? Just wondering.

Id honestly like to hear your side.

I have nothing against telesales. I wish there were more of it in my area because they are so easy to replace. Especially if it's AmAm or any of the companies under their umbrella.

My response is to the agent that's looking to make a living off telesales. It is a failed model for the producing agent.

I do know there's a handful of producing agents doing pretty well with it but they are the rare exception and even those agents would do far better face to face.

I'm not talking about the uplines or the call center operator.

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60% would not be all on the agents as clients can be deceptive as well. However, a bad agent can put a big number up pretty quick. If you clean sheet everyone you see, you can write much more than a quality agent so it is pretty easy to stack up the numbers.

Everything is priced and the underwriting is based on the projection of when the person would die. Quality agents are not writing people expected to die in the next 2 years as they wouldn't qualify. Bad agents are writing the unhealthy and trying to push them past the underwriting. Naturally the numbers will skew in favor of the bad agents. The 40% paid claims in the contestability period isn't based on total policies, it is based on policies where there was a death in the first 2 years. A good agent should have minimal of these.

I looked in the LIC FE survey but they do not give rescission percentages for the industry.

Nonsense...................................................

 

[pcbinsurance]

I agree 100% with that statement. Especially if the entire presentation was recorded.

This is why you find a lot of insurance carriers moving into telesales. They feel like its more controlled.

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Are your call center agents required to tell each person who is buying a policy that they have a 2-year Contestability period and the beneficiary and/or the funeral home might have to wait up to nine months to get paid?

 

[rousemark]

I have nothing against telesales. I wish there were more of it in my area because they are so easy to replace. Especially if it's AmAm or any of the companies under their umbrella.

My response is to the agent that's looking to make a living off telesales. It is a failed model for the producing agent.

I do know there's a handful of producing agents doing pretty well with it but they are the rare exception and even those agents would do far better face to face.

.

Maybe not... They might have such an aversion to face to face that they would not do nearly as well. Not everybody can do what you and others are doing. On the other hand, there are agents that can do very well F2F but have such a fear of the telephone, there is no way thye could make it in phone sales.