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8 Cards in this Set

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Selling insurance to people with insurance:
Examples:
 DI rider on LI policy
 Indiv. Insurance to supplement Group
 replacements / upgrades
 make sure client is fully, but not overly, insured
Recall: The Basic Types of Medical Insurance (MI) are:
 Hospitalization insurance – standard conditions; low premiums
 Major Medical – catastrophic conditions; low premiums
 Comprehensive = A + B; high premiums
Commissions for Agents and Brokers vary by:
 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.
Regulations in the Sale of Individual Health Insurance:
 Outline of Coverage
 Replacement Regulations – disclosures to the ph:
 risks involved (new exclusions)
 loss of equity in old policy
 Advertising Regulations
THE AGENT’S ROLE in SELLING and SERVICING a POLICY.
see next
With Client, Before Issuing the Policy
 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
On Delivery
 Explain cpy’s decisions to the ph (esp. if NIAAF)
 Review benefits  prevent lapses due to misunderstanding
While Policy is In Force
 “Sell” rate increases
 Help ph find a better policy (e.g. if ph’s finances change)
 Sell upgrades, replacements (see regulations above)


Done.