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8 Cards in this Set
- Front
- Back
Selling insurance to people with insurance:
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Examples:
DI rider on LI policy Indiv. Insurance to supplement Group replacements / upgrades make sure client is fully, but not overly, insured |
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Recall: The Basic Types of Medical Insurance (MI) are:
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Hospitalization insurance – standard conditions; low premiums
Major Medical – catastrophic conditions; low premiums Comprehensive = A + B; high premiums |
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Commissions for Agents and Brokers vary by:
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Insurer’s objectives
Policy year rising (to reward persistency in MI) first-year higher; decreasing (DI and LI) flat (P/C) Mnemonic: MI gets More and More; DI Decreases; LI gets Lower. Vesting (to reward persistency) Type of Policy Volume bonuses Handling of Replacements Don’t commission them too high, b/c n/n in best interest of the ph. |
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Regulations in the Sale of Individual Health Insurance:
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Outline of Coverage
Replacement Regulations – disclosures to the ph: risks involved (new exclusions) loss of equity in old policy Advertising Regulations |
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THE AGENT’S ROLE in SELLING and SERVICING a POLICY.
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see next
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With Client, Before Issuing the Policy
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Prevent Overinsurance
But at the same time: Convince customer he needs supplementary insurance Compete with other ins cpy agents Explain the policy benefits, waiting period, cost-sharing renewability Good Health clause Offer optional riders Deliver an Outline Of Coverage field underwriting |
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On Delivery
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Explain cpy’s decisions to the ph (esp. if NIAAF)
Review benefits prevent lapses due to misunderstanding |
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While Policy is In Force
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“Sell” rate increases
Help ph find a better policy (e.g. if ph’s finances change) Sell upgrades, replacements (see regulations above) Done. |