LAPSE’S

-LAPSE-

A lapse is when a client discontinues paying their premium, the policy is considered lapsed and the agent no longer receives commission on that policy.

It is important to keep policies from lapsing in order to maximize your renewal income.

TECHNIQUES TO KEEP YOUR POLICIES FROM LAPSING

TECHNIQUES

Call your clients ahead of scheduled premium increases, before they receive notification from the carrier.

TECHNIQUES

When you receive a notification from the carrier that your client has requested to be removed from a EFT payment in lieu of a direct bill, this usually indicates that another agent is trying to replace your business. You should stop by and see your client and conduct a service call. This will give you the opportunity to conserve the business.

TECHNIQUES

Anytime you receive a notification from a carrier regarding premium payments past due, you should call the client and follow up. Many times clients forget why they purchased their policies. A simple phone call reassuring the client of the value of their policy will often conserve your business.

Building a strong relationship and earning your clients loyalty is the most effective way of keeping other agents from replacing your business.

TIP:

The VNC system automatically notifies you of client birthdays two days prior. By sending birthday cards or making a simple phone call to wish your client a Happy Birthday, will help you build a strong relationship with your client.