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Cancellations Customer Service
Cancellations • It is important to remember that even though you get advanced on policies prior to their issue, the money is not actually earned until the case is placed and on the books for at least 12 months. Normal cancellation rates should NOT exceed 10% of your written business. • Abnormal cancellation rates will result in a decrease of your advance per policy and effect your year end bonus. All cancellations occurring within the policies first anniversary will be counted against your loss ratio.
techniques • Make sure all paperwork is filled out correctly and all required forms are with the application. Lack of complete paperwork results in unnecessary delays processing the application, which in turn increase the odds of a cancellation.
techniques • Conduct ALL point of sale telephone interviews. If you do not complete these at the time of sale, the applicant will be called days, sometimes weeks later to complete the underwriting process. The person conducting the point of sale interview is NOT a licensed representative. Therefore, if the applicant has any questions regarding their policy, the interviewer cannot answer these questions. Many times, this leads to an unnecessary cancellation or suspension of the underwriting process.
techniques • Return client phone calls promptly. Often applicants call with questions regarding their policy. If they do not hear from you in a timely fashion, they will call the carrier directly. The home office representative has never met them and does not know their personal circumstances, therefore they may not answer the applicants questions to their satisfaction. This often causes unnecessary cancellations.
Tip: • Applicants may experience buyers remorse. This usually occurs the evening after the sale or the next morning. If you call the applicant the morning after the sale to verify a specific detail, you can address any underlying concerns at that time.
