Transcript Liberty National - United American Insurance Company

Reinstatement Bonus
Program
TMK1536 092910
Agent training only. Not for sales use.
Agenda
The purpose of this training is to show how to make
money and increase activity through the reinstatement
bonus.
I.
II.
III.
IV.
V.
What’s in it for you?
When does a reinstatement qualify for bonus?
Who are we calling and what do we say?
How do I reinstate a policy?
Approach at the home
TMK1536 092910
Agent training only. Not for sales use.
Reinstatement Bonus
Program
I.
TMK1536 092910
What’s in it for you?
Agent training only. Not for sales use.
What’s in it for you?
•
•
•
•
•
Agents: Reinstatement bonus $$$$$$$
Agents/Managers: Increased Commissions $$$$$$$
Everyone: Increased Renewals $$$$$$$
Everyone: Increased Agent activity $$$$$$$
Everyone: Culture of Quality $$$$$$$
TMK1536 092910
Agent training only. Not for sales use.
How is the bonus paid?
• Life: Bonus equal to 25% of the annual premium
• Accident and Health: Bonus equal to 15% of the
annual premium
• No Bonus paid on Med Supp, Dental, Vision, ADP
TMK1536 092910
Agent training only. Not for sales use.
How is the bonus paid?
• Reinstatements processed in
the home office by the first
Friday of the month will be paid
by the 15th
• Agency Owner will receive a
physical check mailed to the
Agency for purpose of
recognizing the agent
• Agent must be active at the
time of bonus payment
TMK1536 092910
Agent training only. Not for sales use.
How are commissions & renewals paid?
• Policies reinstated in the first policy year:
• Reinstating agent receives any remaining first-year
commission, paid to commission account (same for
managers)
• Reinstating agent receives renewals as earned
beginning the 13th premium payment
• Policies reinstated in second or subsequent year:
• Reinstating agent receives renewals as earned
starting with next premium payment
• No negative impact to DCN if reinstated policy lapses
again
TMK1536 092910
Agent training only. Not for sales use.
Increased Activity
• What is the No. 1 challenge new Agents face?
• Reinstatements perfect for:
• New Agents new to area or limited Project 100
• Supplementary activity for Agents struggling with
referral collection/setting appointments
• What’s a perfect lead look like?
• Customer knows Liberty National
• Has a need for insurance
• Can qualify for coverage
• Could afford it at one point
TMK1536 092910
Agent training only. Not for sales use.
Increased Activity
• Lapsed policyholder appointment setting fits in
perfectly with Monday/Thursday call sessions
• Happy customers who have had their policies
reinstated are a great source of:
• Referrals
• Additional sales (when it makes sense)
• Good things happen when Agents are talking to
people!
TMK1536 092910
Agent training only. Not for sales use.
Culture of Quality
• The Reinstatement Bonus is the catalyst to kick off a
quality movement in the Agency
• The biggest benefit to Agencies and their wealth
building through renewals is when everyone begins
watching their business and less business lapses
• How to do I catch it before it lapses?
Train on calling delinquent customers on the Premium
Notice/Combined Billing Report (FA215). Found on
Field Reports on Agent Services
TMK1536 092910
Agent training only. Not for sales use.
Premium Notice/Combined Billing (FA215)
• Published on Saturdays (ready for Monday call clinic)
• Most policies lapse on 18-20th of the month
• Agents use first 15-30 minutes of each call clinic to
call delinquent customers on their agency
TMK1536 092910
Agent training only. Not for sales use.
Reinstatement Bonus
Program
II. When does a reinstatement
qualify for bonus?
TMK1536 092910
Agent training only. Not for sales use.
When does a reinstatement qualify for bonus?
•
•
•
•
•
•
Policy must have lapsed (49 days past due)
Reinstating agent must be different than the original
writing agent
Must collect all back premiums and current month
Must be reinstated on bank draft
Check for back premiums must be from same bank
account as ongoing bank draft
Bonus only paid once on a policy
TMK1536 092910
Agent training only. Not for sales use.
Example of all back premiums + current
• Today is May 10th. A lapsed policy with premium of $30
per month with a March 1st (3/1) Date Paid to (DPT)
•
Agent must collect $90:
• $30 for March
• $30 for April
• $30 for May
Draft June’s premium from their checking account
End of the month reinstatements, get next month’s
premium.
TMK1536 092910
Agent training only. Not for sales use.
How is Reinstatement Bonus paid?
• Agency mails weekly:
• Reinstatement Bonus Transmittal
• Reinstatement Request Forms with checks for
back premiums for each reinstatement
• Authorization for Preauthorized Payments
• Life reinstatement applications (when applicable)
• Policies in force when reinstatement has been
approved and money is applied
• Quality Control Manager should be handling this!
TMK1536 092910
Agent training only. Not for sales use.
Reinstatement Bonus Transmittal
TMK1536 092910
Agent training only. Not for sales use.
Reinstatement Bonus
Program
III. Who are we calling and
what do we say?
TMK1536 092910
Agent training only. Not for sales use.
Who are we calling?
• Lapse list emailed as spreadsheet by Home Office
22nd of each month from [email protected]
• Includes last 3 months of lapses
• List is pure lapses. No cash value, Extended
Insurance, Reduced Paid Up
TMK1536 092910
Agent training only. Not for sales use.
The List
• Quality Control Manager should be in charge of
distributing and tracking lapsed policies
• Leads are sorted by ZIP code and grouped by Payor
• Leads should be printed and distributed one page at
a time
• Reward agents who bring in the most:
• Preset appointments
• Child safe leads
• Referrals
TMK1536 092910
Agent training only. Not for sales use.
The List
•
All Reinstatements are turned in to the Quality
Control Manager so she can submit to Home Office
and provide Agency Owner info on who is doing the
best job working them (play the hot hand)
•
Lapses don’t go bad, people’s situations change.
That’s why we are distributing three months
•
Yes, the Home Office conservation department is
calling customers, too
TMK1536 092910
Agent training only. Not for sales use.
How do I read the list?
•
Left to right
•
Payor: Ask for this person when calling
•
Insured: Good to know the Insured in case they
purchased on spouse or dependents
•
Last Paid: If there is a letter in this column, that
means the last payment was through payroll
deduction. Good to know if the customer doesn’t
remember purchasing. “Mr. Jones, it looks like you
purchased this through your employer.”
TMK1536 092910
Agent training only. Not for sales use.
How do I read the list?
•
Plan Code: This tells what type of coverage was
purchased. Only need to tell them Life, Cancer,
Accident, etc. Don’t get into policy benefits on
phone. Print Plan Code Cheat Sheet from Agent
Services
TMK1536 092910
Agent training only. Not for sales use.
How do I read the list?
•
Issue Date: When the policy was purchased.
“Mrs. Jones, you’ve been paying on the policy since
2005. I sure would hate for it not to be there when
you need it.”
•
DPT: Date Paid To. This is the last month the
customer paid a premium. Used to calculate how
many premiums the Agent will need to collect
TMK1536 092910
Agent training only. Not for sales use.
How do I read the list?
•
Address: Used to verify when appointment set
•
Some will have no phone number or bad phone
numbers. We have an address, go see them.
PO Boxes use www.zabasearch.com
•
Premium: Annual premium of the policy. If the
premium is $10, it is a $3,000 Accidental Death
Policy
TMK1536 092910
Agent training only. Not for sales use.
Getting Policy Info
• Because the lapsed policy is not typically in the
Agent’s agency, the Agent will need the Quality
Manager to pull the customer’s info from the Field
Inquiry screen prior to going on the appointment
TMK1536 092910
Agent training only. Not for sales use.
Getting Policy Info
• The info from the Info Screen should show the agent
any other coverage the customer has in force
• This does two things:
• Make sure the Agent isn’t surprised in the home
• The coverage can be accounted for in the needs
analysis
TMK1536 092910
Agent training only. Not for sales use.
What do we say?
This is a customer service call, not a sales call!
TMK1536 092910
Agent training only. Not for sales use.
What do we say?
Emphasize the three areas bolded and underlined
•
•
•
Your = We already do business together
Urgent = It is urgent because they are not currently
covered
No longer in benefit = If something were to happen,
their policy would not pay
TMK1536 092910
Agent training only. Not for sales use.
What do we say?
No matter the response, set the appointment.
TMK1536 092910
Agent training only. Not for sales use.
Reinstatement Bonus
Program
IV. How do I reinstate a policy?
TMK1536 092910
Agent training only. Not for sales use.
What’s in our packet?
• Reinstatement Request Form (All reinstatements)
• Authorization for Preauthorized Payments (All
reinstatements)
• Life Reinstatement Application (if needed)
TMK1536 092910
Agent training only. Not for sales use.
Reinstatement Request Form
TMK1536 092910
Agent training only. Not for sales use.
Authorization for Preauthorized Payments
TMK1536 092910
Agent training only. Not for sales use.
When does applicant have to answer health
questions on reinstatement application?
TMK1536 092910
Agent training only. Not for sales use.
When does applicant have to complete
reinstatement application?
• Life policies with face amount of $50,000 and below require
a reinstatement application if the DPT is more than 120
days. Spouse rider + base policy.
• Life policies with face amount of $50,001 or more require a
reinstatement application if the DPT is more than 60 days
• Health reinstatements must be less than 90 days past due
(Cash Cancer policies cannot be reinstated)
• Yes answers on reinstatement applications reviewed by
underwriting
TMK1536 092910
Agent training only. Not for sales use.
Where are the Reinstatement Applications?
Download correct Reinstatement Application for their
state from www.libertynational.com Agent Services.
TMK1536 092910
Agent training only. Not for sales use.
Reinstatement Bonus
Program
V. Approach at the home
TMK1536 092910
Agent training only. Not for sales use.
Approach at the home
Always do what we said we would do first…
Reinstate the Policy
• Review coverage and answer questions
• Ask for the check for the correct amount
• Make sure Authorization for Preauthorized Payments
is same account on the check
• Fill out Reinstatement Request and both sign
• Fill out Reinstatement Application (if applicable)
TMK1536 092910
Agent training only. Not for sales use.
Transition to Laptop Presentation
• Only attempt to place additional business with the
customer if the reason for lapse was not money
• Agent: “When was your last free Needs Analysis?”
• Customer: “We haven’t seen an Agent in a while.”
• Agent: “Let’s take care of that while I’m here.”
TMK1536 092910
Agent training only. Not for sales use.
Transition to Laptop Presentation
• Treat as Existing Policyholder lead (Agent knows
what existing coverage customer has)
• Get referrals on all reinstatements
• Agent should have built rapport using F.O.R.
TMK1536 092910
Agent training only. Not for sales use.
Commission Disallowance
• A common mistake is to use reinstatements for the
sole purpose of writing new business for new
commission
• Make sure Agents are aware of the Commission
Disallowance Rule
TMK1536 092910
Agent training only. Not for sales use.
Mailing Reinstatements
TMK1536 092910
Agent training only. Not for sales use.
Mailing Reinstatement Letters
• Use approved Reinstatement Letter
• Can edit your contact information
TMK1536 092910
Agent training only. Not for sales use.
Mailing Reinstatement Letters
• Set up Business Reply Mail account through
post office for reply envelopes. Only pay for
postage you use
TMK1536 092910
Agent training only. Not for sales use.
Setting up Business Reply Account
• Sign up for USPS Business Reply Account
•
https://reg.usps.com/register?app=abrm&appURL=https
://abrm-prod.usps.com/ABRM/secure/welcome.do
• Register for Business Reply Mail Permit
•
http://pe.usps.com/mpdesign/mpdfr_brm_perm.asp
TMK1536 092910
Agent training only. Not for sales use.
Setting up Business Reply Account
• Choose account type. Recommend you start
with a Business Reply Mail account. This allows
up to 910 returned mail pieces a year for a $200
annual fee
TMK1536 092910
Agent training only. Not for sales use.
Mailing Reinstatement Letters
• Handwrite customer’s name and address on
outside of outbound envelope. Call three days
after mailing
• Reinstatement Letters only for customers
outside of your area. Additional activity
• Perfect for Quality Control Manager (can
receive bonus if licensed)
• Bonus/commissions/renewals paid the same on
policies reinstated through the mail
TMK1536 092910
Agent training only. Not for sales use.
Agenda
The purpose of this training is to show how to make
money and increase activity through the reinstatement
bonus.
I.
II.
III.
IV.
V.
What’s in it for you?
When does a reinstatement qualify for bonus?
Who are we calling and what do we say?
How do I reinstate a policy?
Approach at the home
TMK1536 092910
Agent training only. Not for sales use.
What’s in it for you?
•
•
•
•
•
Agents: Reinstatement bonus $$$$$$$
Agents/Managers: Increased Commissions $$$$$$$
Everyone: Increased Renewals $$$$$$$
Everyone: Increased Agent activity $$$$$$$
Everyone: Culture of Quality $$$$$$$
TMK1536 092910
Agent training only. Not for sales use.