Year End Business

“It’s that time of the year again!” This is a phrase that we all hear so often as we near year end. Everyone is pushing to get the last applications in and processed before the year is over, so time here is crucial to say the least. Not only do carriers have closing dates, such as Thanksgiving and Christmas, but they are also often short-staffed which it makes it more difficult to handle the year-end rush.

With the end of the year approaching, agents want their new business processed as quickly as possible in order to meet their annual production goals. Here are some items to keep in mind when submitting new business to be processed before the end of the year.

Top 5 things to consider:

  • Know the carriers’ deadlines. Different carriers will have different deadlines, such as last day to submit an application to be considered year end business, time frame in which the application has to be signed, last issue date, and so on.
  • Make sure the application is in good order. This is important so the underwriter does not have to go back and request any missing forms or information not provided on the application. This would require you to go back to the client, and we all know that this can take some time to accomplish. Carriers will not guarantee that all cases submitted will be issued if there are outstanding items.
  • Ensure your E&O is current and that you have completed your AML training, as these can delay issuing the policy.
  • Have some background knowledge of your client’s medical history so you know which carrier you should be pursuing. As we all know, some carriers are more lenient towards different medical conditions, and you may not have enough time to go after another carrier if you don’t get the offer that you were looking for.
  • Be proactive in obtaining medical records. If you know that a case may require medical records, request them upfront so that you don’t have to wait on the doctor’s office to release them, as they are also pretty busy at this time of the year.

You may also want to consider obtaining a premium check upfront from the client and submitting it with the application along with the Temporary Insurance Agreement. This can bind the coverage so that the policy will be considered technically Inforce once being issued (not all cases are eligible for this option).

Carriers will also have different producer bonuses depending on what product is being sold and some will actually give the producer a bonus on each sale at this time of the year.

Good luck and off to the races!

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