Posted: Tue Sep 21, 2004 12:29 pm
There is a certain insurance company (no names) that now has a record with me of their agents not telling the truth.
To begin with I am not one of those (like radio and on-line advertisements) that show up at a potential client with best, best rates, what I call God rates. I actually do some field underwriting to see what rating the client may expect to receive. When there are excess medical problems I'll do a query with underwriting (trial app) to get a preliminary rating. I also let the client know that even the preliminary rating isn't solid until after full underwriting.
OK, now back to the story. In January a current client called me and wanted to get life insurance for his wife. After talking with him I found that she had health problems, even to the point of having some colon removed. I did a preliminary app. and gave him my quotes. He said his current auto/homeowner agent also quoted but said his wife would get the best quotes his company has to offer. I asked how the agent knows this, my client said...because the agent told me. Ok, after a lot of back and forth, my client went with the other agent. The end of the story was that the policy was issued standard table 4 which is a far, far cry from the best quote the company has to offer. My client never told me, his father told me. I have no idea the cost of the final premium.
I just got off the phone with a previous client. She and her husband want life insurance. I went through the same initial protocol and found that she is in the mid 50's, has arterial fibrillation, is on 5 different daily meds, her husband is over mid 50 and a diabetic. I did a trial app and quoted premiums that reflect what they may expect to receive. The wife just let me know that they have received quotes from their AO/HO agent (same company from the story above). She want 75,000 of life insurance. Her current AO/HO agent told her that she won't need a paramed or blood taken, only an application to be taken on her. Let me get this correct, does anyone know of a life insurer that won't draw blood for $75,000 of insurance?
If this is true it is an insurance company waiting for one pile of adverse selection problems. Plus they'll probably have a lot of non smokers that are really smokers in their book. Could they be doing some type of underwriting at the time a claim is filed giving them a large denied claims ratio?
Call me a sceptic but from the previous match with one of the agents representing this company in question........I don't believe it. :unsure:
To begin with I am not one of those (like radio and on-line advertisements) that show up at a potential client with best, best rates, what I call God rates. I actually do some field underwriting to see what rating the client may expect to receive. When there are excess medical problems I'll do a query with underwriting (trial app) to get a preliminary rating. I also let the client know that even the preliminary rating isn't solid until after full underwriting.
OK, now back to the story. In January a current client called me and wanted to get life insurance for his wife. After talking with him I found that she had health problems, even to the point of having some colon removed. I did a preliminary app. and gave him my quotes. He said his current auto/homeowner agent also quoted but said his wife would get the best quotes his company has to offer. I asked how the agent knows this, my client said...because the agent told me. Ok, after a lot of back and forth, my client went with the other agent. The end of the story was that the policy was issued standard table 4 which is a far, far cry from the best quote the company has to offer. My client never told me, his father told me. I have no idea the cost of the final premium.
I just got off the phone with a previous client. She and her husband want life insurance. I went through the same initial protocol and found that she is in the mid 50's, has arterial fibrillation, is on 5 different daily meds, her husband is over mid 50 and a diabetic. I did a trial app and quoted premiums that reflect what they may expect to receive. The wife just let me know that they have received quotes from their AO/HO agent (same company from the story above). She want 75,000 of life insurance. Her current AO/HO agent told her that she won't need a paramed or blood taken, only an application to be taken on her. Let me get this correct, does anyone know of a life insurer that won't draw blood for $75,000 of insurance?
If this is true it is an insurance company waiting for one pile of adverse selection problems. Plus they'll probably have a lot of non smokers that are really smokers in their book. Could they be doing some type of underwriting at the time a claim is filed giving them a large denied claims ratio?
Call me a sceptic but from the previous match with one of the agents representing this company in question........I don't believe it. :unsure: