According to Edward Graves McGill’s Insurance, most companies give their agents specific instruction about the types of risks that will or will not be accepted and they instruct their agents to solicit only those risks they believe eligible under the company’s rules. And in some cases where the eligibility is doubtful, some companies, in order to save on expenses, require a preliminary statement where an application is declined, postponed or accepted at lower than standard rates.
An experienced agent knows what types of additional information to request when an applicant reveals health concern. The process will be slow if an agent does not complete the necessary information for the applicant. In some cases, the first supplemental report triggers additional requested reports. The time needed to approve, reject or rate the case can be extended for months if the information is poor and not detailed to cover all areas of concern, which also include an attending physician statement.
When selling life insurance, you have a responsibility. A responsibility to educate clients as to the different policies available. You have to help them make the best decisions for them and their family because no two situations are alike. They are licensed to conduct business on behalf of the company. But some agents are independent and work with more than one company.
Keep in mind insurance brokers are different and defined by the Council of Insurance as the following: Insurance brokers typically work for the policyholder in the insurance process and act independently in relation to insurers. Brokers assist clients in the choice of their insurance by presenting them with alternatives in terms of insurers and products. Acting as “agent” for the buyer, brokers usually work with multiple companies to place coverage for their clients. Brokers obtain quotes from various insurers and guide clients in determining the adequate policy from a range of products.
A strong agent that has a solid reputation with home office underwriters can really benefit a client that may have a long list of problems or is borderline in classifications. Because of the agents background and ability, they could get the benefit of a lower premium.