Washington Insurance Continuing Education
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edward hulse asked:
Confidentiality to the Insurance Prospect
In attempting to qualify a prospect completing a financial questionnaire, analyzing needs, etc., insurance agents are privy to an applicant’s personal and financial information. Personal information about a client should never be released without the prior approval from the client.
Full Disclosure
The agent not only has the responsibility of full disclosure to the insurer but also to the prospect or client.
In this situation, full disclosure means informing the prospect or client of all facts involving a specific policy so an informed decision may be made. This also accomplishes other goals as it helps clients:
•   Evaluate the relative costs of similar plans offered by a competitor.
•   Understand the basic features of insurance.
•   Select the most appropriate policy to meet the needs of the prospect/client.
•   There are two guides that are used by agents to help them comply with full disclosure
1.        NAIC Buyer’s Guide which was developed by the National Association of Insurance Commissioners as an aid to consumers who are thinking about the purchase of life insurance. It explains the basic types of life insurance and provides the consumer with suggestions to aid in its purchase. Included in the Buyer’s Guide is an explanation of the surrender cost indexes used in the Policy Summary.
2.     The Policy Summary includes two types of cost indexes; the life insurance surrender cost index and the life insurance net payment cost index. The surrender cost index is useful to applicants who wish to compare cash values of policies. The net payment index is helpful when a person compares the death benefits of policies. Both guides are helpful to agents who wish to explain the features and benefits of the life insurance policy they are presenting.
The underwriting process for an insurance application can take time. Most companies try to complete their underwriting process in 21 days, however, delays may occur. Delays such as request for more information from the applicant, doctor reports, etc. An agent should keep the applicant informed as to the process of the application. For this reason, it is imperative that the agent be prompt in sending the application, after a thorough review, to the insurer. Many underwriting delays occur simply because the application is not complete.
When an application is accepted, the agent should deliver the policy promptly. At delivery the agent should review the policy’s features and benefits. This will help solidify the sale and also convert the policy-owner into a client.
When an applicant is rated or declined, the agent is responsible to find out the reasons for such action. Was it medical? Was it something that was overlooked by the underwriter? Should additional information be provided? In any event, the agent should be prepared to explain the rating or rejection to the client.
Assuming the rating or rejection is valid, the agent has the ethical responsibility to notify the client promptly.
Washington Insurance Continuing Education
Insurance Continuing Education
First Aid Cpr Training
Confidentiality to the Insurance Prospect
In attempting to qualify a prospect completing a financial questionnaire, analyzing needs, etc., insurance agents are privy to an applicant’s personal and financial information. Personal information about a client should never be released without the prior approval from the client.
Full Disclosure
The agent not only has the responsibility of full disclosure to the insurer but also to the prospect or client.
In this situation, full disclosure means informing the prospect or client of all facts involving a specific policy so an informed decision may be made. This also accomplishes other goals as it helps clients:
•   Evaluate the relative costs of similar plans offered by a competitor.
•   Understand the basic features of insurance.
•   Select the most appropriate policy to meet the needs of the prospect/client.
•   There are two guides that are used by agents to help them comply with full disclosure
1.        NAIC Buyer’s Guide which was developed by the National Association of Insurance Commissioners as an aid to consumers who are thinking about the purchase of life insurance. It explains the basic types of life insurance and provides the consumer with suggestions to aid in its purchase. Included in the Buyer’s Guide is an explanation of the surrender cost indexes used in the Policy Summary.
2.     The Policy Summary includes two types of cost indexes; the life insurance surrender cost index and the life insurance net payment cost index. The surrender cost index is useful to applicants who wish to compare cash values of policies. The net payment index is helpful when a person compares the death benefits of policies. Both guides are helpful to agents who wish to explain the features and benefits of the life insurance policy they are presenting.
The underwriting process for an insurance application can take time. Most companies try to complete their underwriting process in 21 days, however, delays may occur. Delays such as request for more information from the applicant, doctor reports, etc. An agent should keep the applicant informed as to the process of the application. For this reason, it is imperative that the agent be prompt in sending the application, after a thorough review, to the insurer. Many underwriting delays occur simply because the application is not complete.
When an application is accepted, the agent should deliver the policy promptly. At delivery the agent should review the policy’s features and benefits. This will help solidify the sale and also convert the policy-owner into a client.
When an applicant is rated or declined, the agent is responsible to find out the reasons for such action. Was it medical? Was it something that was overlooked by the underwriter? Should additional information be provided? In any event, the agent should be prepared to explain the rating or rejection to the client.
Assuming the rating or rejection is valid, the agent has the ethical responsibility to notify the client promptly.
Washington Insurance Continuing Education
Insurance Continuing Education
First Aid Cpr Training
