Bait and switch - life insurance

[etimer]

I've been doing this business fr over 25 years. I have found this happen far too often when quoting life insurance.

I try to give the best estimate quote and will ask health questions. If the prospect is over the weight guidelines, blood pressure, I will tell them and quote with the appropriate class and rating. Too often than I care to think, I find that someone else as quoted them best preferred rates, a rate they clearly will not get. I just had this happen to me with an overweight father and a Downs Syndrome child. The other agent quoted best preferred on both of them. Of course the father didn't know it and completed an application.

I consider this to be bait and switch. TO those that don't know how it works....this is what they do. The bait and switch agent just wants a policy in his hand to deliver to the overweight person. At the time of delivery is when he will sell it. Mr. Client, I am sorry this policy came through higher than we hopped but you fall outside their best preferred rating class and would do so with any other company. But at least you have a policy, I am here with one and I recommend you take it.

I find the bait and switch to be unethical. Do you?

This could be ended wit a form that is part of the application package. The form could read:

The agent attests that to the best of his/her knowledge, they have checked the underwriting requirements for the class/rate quoted to you. After going through the full underwriting process, there may be unforeseen events that will preclude you from this class. Sign - agent and sign - applicant.

[wlunday]

etimer, I feel your pain.For those of us that teach ethics for NAIFA and other associations, It's a point of discussion every time. I'm not sure another form will do anything, though. This is the same guy that just tells the client to sign here, and here, and here... without any explaination.

Carriers can do something about it, by reviewing and tracking such activity, but the crappy carriers out for a buck will always look the other way.

What the life and health industry (and P/C too?) needs is a mandatory national association membership similar to the Bar Association for the lawyers. It's the association that polices its own and dis-bars its members. I'm not saying they do a good or bad job, but they CAN do it. Through such a mandatory association the agent community could also yield some control over the marketing practices of both bad agents and companies. Just my 2 cents.

Swymmer

[d's insurance store]

Of course it's unethical. And not much different than a phone prospect being less than candid about their own health attributes. And, after 25+ years in this business, continuously saying that I thought I'd seen everything, I think I've finally arrived at the point where I refuse to 'take ownership' of anybody's policy/application until everything is settled and the check clears.

Look, we live in a time where ethics are bent all the time in all walks of life. If you're going to define yourself as an ethical insurance businessperson, then you'll have to take the high road far more often than you'd like, let the transgression pass, hope that kharma comes around and move on to the next prospect. This is not elementary school where you can whine that the other person isn't following the rules and there is a teacher who will punish the guilty party.

Moan and bellyache here, get your sympathy, and if life insurance is your chosen path, get back on the phone and start in with the next prospect. The reason why life insurance commissions are so high is that it's never been an easy sale and not everyone who tries is successful at that side of the business. You're the one who has to sleep well at night and look at yourself the next day in the mirror.

We've all been there and it is painful.

[etimer]

I've been in this business for many years but can't say life ins. is my chosen path. I do know that when I do get involved in life insurance it is a high ratio of hanky panky that goes on in its marketing.

Even the TV and radio ads are misleading. They give the best preferred rats and many times it will be for a 10 year level term. Seems to be rife with misleading marketing.

Of course it's unethical. And not much different than a phone prospect being less than candid about their own health attributes. And, after 25+ years in this business, continuously saying that I thought I'd seen everything, I think I've finally arrived at the point where I refuse to 'take ownership' of anybody's policy/application until everything is settled and the check clears.

Look, we live in a time where ethics are bent all the time in all walks of life. If you're going to define yourself as an ethical insurance businessperson, then you'll have to take the high road far more often than you'd like, let the transgression pass, hope that kharma comes around and move on to the next prospect. This is not elementary school where you can whine that the other person isn't following the rules and there is a teacher who will punish the guilty party.

Moan and bellyache here, get your sympathy, and if life insurance is your chosen path, get back on the phone and start in with the next prospect. The reason why life insurance commissions are so high is that it's never been an easy sale and not everyone who tries is successful at that side of the business. You're the one who has to sleep well at night and look at yourself the next day in the mirror.

We've all been there and it is painful.