tmk1536 092910agent training only. not for sales use. writing quality business updated december 2014...

TMK1536 092910 Agent training only. Not for sales use.

Writing Quality Business

Updated December 2014

Laptop Sales

It’s not how much you write, it’s how much you keep.

What resources are available to help me write

better business?

Laptop On Demand

Where can I find this information?

This Powerpoint found on Agent Services in the Quality Business section ‘Writing Quality Business Powerpoint’

Agents Instruction Guide

What’s in the Agent’s Instruction Guide

A-250 Applications•Medical History Guide•Height and Weight Build Chart•Underwriting Chart•ALX-Only Conditions•Auto Decline Conditions•Signature rules•Citizenship and Guardianship rules

Worksite guidelines are found in the Worksite Agent Guide on Agent Services:

Worksite Agent Guide

Deadlines

Application Review Deadlines

• Eapps must be in portal by midnight Sunday to be reviewed on Monday

• Eapps signed by customer on Monday must be in the portal by noon Central to be reviewed on Monday

• Paper apps/CODs/Term Conversions, etc., must be turned in to QM by 9 a.m. Central to be reviewed on Monday

Uploading Applications

• Applications should be uploaded from an Agent’s laptop daily

• After seven days, applications will automatically upload from the Agent’s laptop to the portal when the agent syncs their computer

• Communicate with QM if:• Applicant request draft on certain day of week• Don’t have three employees that have purchased

on a new worksite case

What is DCN?

Did we get the business to the Customer?

What is DCN?

Declines (<1%): Primarily worksite. Poor training, systems, and oversight.

Cancellations (2%): Primarily individual. Poor training, systems and oversight.

Not-Takens (7%): Primarily worksite. Poor training, systems and oversight.

Company DCN 10% as of November 2014

Top Reasons For Declines

Declines (<1%)• Not employed long enough: 6 months by end of enrollment period• Medical History• Only 1 policy per family or individual

Top Reasons for Cancels

Cancellations (2%)• Outdated COD• Requested by customer on QAC• QAC not completed

Top Reasons for Not Takens

Not-Taken (7%)•Payment not received for entire worksite case•Payment not received for new premium on a re-enrollment•Employees marked off bill between enrollment and first payment•Non Sufficient Funds/Bad Bank Information

Agents Direct Pay and Bonus is impacted by

DCN their first 7 months

Agents receive maximum direct pay and 100% of

bonus first two reports.

How is DCN calculated?

Declined Premium

Cancelled Premium

Not Taken Premium

Submitted Premium

Example of 6% DCN

$0 Declines

$200 Cancels

$400 Not Takens

$10,000 Submitted Premium

So, if I have a $1,000 policy Declined, Cancelled or Not Taken, how much clean

business do I have to write to get all my bonus?

$10,000

$1,000 DCN$10,000

Submitted Premium

Example: Calculating Individual DCN

July25

Sept24

DCNCalculated

Submitted Business

DECLINES, CANCELLATIONS, NOT TAKENS

Reports Published

$4,000 $4,000 $4,000

$100 $350 $350 $200

Submitted Business

Declined, Cancelled, Not Taken Premium

Example: Calculating Payroll Deduction DCN

25June

24July

24Sept

DCNCalculated

Submitted Business

Reports Published

$4,000 $4,000 $4,000

$0 $0 $400 $0

DECLINES, CANCELLATIONS, NOT TAKENS

1 2 3 4 5 6

$0 $600

Submitted Business

Declined, Cancelled, Not Taken Premium

Persistency

What is 4-month Persistency?

Got the business to the Customer, do they keep it?

Agents Direct Pay and Bonus is impacted by

PersistencyMonths 8 and beyond

Definitions

Persistency: Premium issued and paid four months or longer, divided by total issued business based on policy effective date

Example: Calculating Persistency

March1

PersistencyCalculated

Submitted Business Reports Published

Paid 4 months or greater

$5,000 $5,000 $5,000

$12,000

Issued Business

Example of 93% 4-Month Persistency

$9,300 Paid 4 Months

$10,000 Issued

Premium

So, if I have a $1,000 policy not pay four premiums, how

much clean business do I have to pay four months to

get all my bonus?

$8,800

$1,000 Lapse$8,800 Issued

Premium

What is 13-month Persistency?

How much of my hard work, effort, and energy is paying me

a renewal?

Example: Calculating 13-month persistency

JULY 13

AUG 13

SEPT 13

OCT 13

NOV 13

DEC 13

JAN 14

FEB 14

APR 14

JUNE14

JULY 14

AUG 14

SEPT14

OCT 14

Paid 13 months

$7,500

Issued Business

Example of 75% 13-Month Persistency

$7,500 Paid 13 Months

$10,000 Issued

Premium

• DCN 6% or less: Agents on DCN earn maximum direct pay and 110% bonus

• 4-Month Persistency 93% or better: Agents earn maximum direct pay and 120% bonus

• 13-Month Persistency 75% or better: Agents maximize their income through renewals

New DCN and Persistency Reports are published on the 25th of each month.

How do I check my DCN and Persistency?

Agent Services onwww.libertynational.com

Click on ‘Reports’

How do I check my DCN and Persistency?

Reports are AL566

How does Quality impact pay & retention?

• 1. Chargebacks

Months Premium Paid

Chargeback %

0-2 months 100%

3 months 90%

4 months 80%

5 months 70%

6 months 60%

Months Premium Paid

Chargeback %

7 months 50%

8 months 40%

9 months 30%

10 months 20%

11 months 10%

• 1. Chargebacks• 2. Direct Pay submit advance commissions

Agency Owner/Director example

• 6 agents on team• 4 agents on DCN, 2 on Persistency• Agent 1: DCN 10 (Maximum direct pay)• Agent 2: DCN 18 (Direct Pay reduced 10%)• Agent 3: DCN 22 (Direct Pay reduced 30%)• Agent 4: DCN 31 (No direct pay)• Agent 5: Persistency 79 (Direct pay reduced 10%)• Agent 6: Persistency 72 (No direct pay)

* Assuming positive commission account. Negative commission account, pay reduced more.

• 1. Chargebacks• 2. Direct Pay submit advance commissions• 3. DCN: Bonus multiplier or reduction first 7 months

• 1. Chargebacks • 2. Direct Pay submit advance commissions• 3. Persistency Bonus multiplier or reduction month 8+

Oh by the way … Career Track

• Last but certainly not least…

Renewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals RenewalsRenewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals Renewals

So how does that translate to dollars?

What does an 6% vs. 16% DCN mean to an

Agent in his first seven months with a $1,425 per

week average?

Take Home Pay

6 DCN Agent takes home $13,394 more

So when is a good time to train on Quality?

So when is a good time to train on quality?

• Orientation • Ongoing classroom training –

• New Agents & Agents/Managers DCN above co. avg • Use this powerpoint

• First sale• First DCN report

Individual Business A-250 Application

Top Reasons for Cancels

Cancellations (2%)Outdated CODRequested by customer (QAC)QAC not completedNon-Sufficient Funds (NSFs)/Bad Bank InformationAdditional underwriting call, exam not completeOral swab not completeMedical records not received

What Comes Next?

Summary Sheet

What’s turned in to Quality Manager?

• What comes next form• Summary sheet• Voided check• Oral Swab form or bar code sticker

Oral Swab Authorization Form

Outdated CODs

Why is an app returned COD?

• Application changed from Whole Life or Term Life to an Modified Life (ALX) based on health or habits

• Application rated for additional premium based on health or habits

• Application issued COD because bank draft was returned for NSF

How do I prevent?

• Good field underwriting• Ask questions exactly as

they appear on the app• Pay attention• Agent Resources in eapp

• Agents Instruction Guide

• Underwriting Guidelines• Height/Weight Build

Chart• Juvenile Height/Weight • ALX (Modified Life)

Agents Instruction Guide

• What can I find in the Agents Instruction Guide?• Rules for submitting personal business• Rules on who can sign the application• Trial Applications

Underwriting Guidelines: Auto Declines

Underwriting Guidelines: Medical History Guide

Lists conditions and “general” guidelines

ALX (Modified Life) Only

ALX Only

Yes answer to these questions in the survey should push you toward an ALX presentation…

ALX Only

If applicant has one of these conditions, the ALX video will play for the Final Expense Need

“Great news! We have a policy specifically designed for people with

your health conditions.”

Completing the Application

• Ask the questions exactly as written• Don’t ask leading questions: “You’ve never had

diabetes have you?”• Yes answers require details, details, details• Explanation must include dates, readings, names of

prescriptions, dosage, and frequency• Example of HBP: Date of diagnosis, last reading,

medications, dosage and frequency

Completing the Application

• Any additional note should be added to the Notes

Quality During the Presentation:

Setting Correct Expectations

Build Charts

If the proposed insured does not fall within the standard weight limits shown on the chart, the proposed insured will be rated.

Juvenile Build Chart

Trial Applications

On A-250 apps that appear to be medically

questionable, submit the application on a trial basis.

• Apps over $1 million

• Collect no payment or app fee

• If issued, will be a COD

So why don’t Agents use Trial applications?

Trial Applications

• Agent must place COD

• Does not count for submit for commissions or bonus until issue

• Does not count against DCN if not taken by customer

Non-Sufficient Funds & Bad Bank Information

OMG, They Said Yes!

For the love of Pete … get a voided check

• Get the check• No check, get bank statement• No statement, look online with customer• No online bank, call the bank with customer to verify

It’s your money…

We Don’t Accept

• Debit cards• Credit cards• Savings accounts• Prepaid cards such as Metabank, Green Dot

(MoneyPak), NetSpend (14 or 16 digit account numbers), Chase Liquid, Amex Bluebird

• Don’t take plastic

Upload Applications Daily

• When do most people get paid?• Doesn’t effect your DCN if not paid on it and doesn’t

count toward bonus• Opportunity to make bonus if app changed to trail or

cancelled

View their Driver’s License

• This makes sure they have one• Not an ID card• Don’t use the Height or Weight on the Driver’s

License

Initial Draft

Initial Bank Draft happens first business day after upload to home office.

That’s why the language in the What Comes Next form say the draft will occur in the “next couple of days” because agents don’t know when the app will leave the portal. And depending on when it is uploaded and what bank it’s being drafted from, it may take an additional day.

Draft Dates: Choose one between 1st – 10th

The date selected in the eapp is for the second and subsequent drafts.

What day of the month do most people get paid?

Only offer a date between the 1st and the 10th. The customer never has to worry about getting drafted twice in the same month.

What Comes Next?

Bank Verification Script

Requested by Customer

QAC Not Complete

What Comes Next?

Pending QAC Script

Additional Underwriting Call or Exam not complete

Underwriting Requirements Chart

What Comes Next?

Oral Swab Not Complete

Oral Swab Authorization Form

Oral Swab Form

• Barcode should have been entered in the e-app• No Oral Swab bar code?

• Do not upload app from portal until received

Oral Swab Kits

No excuse for not getting an Oral Swab:

•Review Oral Swab Training Video on www.libertynational.com Agent Services

•Mail kits immediately. Heat/Cold can destroy sample.

•Should be sent FedEx/UPS

Medical Records Not Received

When are medical records ordered?

• Factors include:• Age• Face amount of the policy• Medical conditions• Treatment

Solidifying the Sale: Last 3 Minutes in the Home

Every Customer Must Clearly Understand

The last three minutes of every sale is where quality business is nailed down. Every customer must understand these things to avoid cancellations.

•They must complete the QAC call•They may need to complete an exam •Their application can be issued as applied for, rated, modified or declined•How much they are paying•When it’s coming out of their checking account

What Comes Next?

Use the Closing Script

Surprises Kill All Deals

Quality After the Submit

Provide Good Customer Service

• Return Phone Calls• Answer questions• Do what you said you were going to do

Worksite

What resources are available to help me write

better business?

This Powerpoint found on Agent Services in the Quality Business section ‘Writing Quality Business Powerpoint’

Worksite On Demand

Better Prospecting

Worksite Agent Guide

Ineligible Industries

Why would an industry be ineligible?

• Poor quality business:• High turnover• Inability to pay bill

These guidelines are in place to protect Agents and Managers!

Why can’t employers pay premiums?

• Our products are exempted from complying with certain requirements mandated by the Employee Retirement Income Security Act (ERISA) safe harbor. However, in order to maintain that exemption, we must comply with the safe harbor rules, one of which is that the employer cannot purchase or pay for the coverage.

Approval Required Industries

Eligible Employees

Employers with less than 10 employees

• Just because you can, doesn’t mean you should.

• Key questions to ask:• Does the business have a bookkeeper/accountant?• If not, who writes the checks?• Is the business doing any other deductions or will

ours be the first?• Is it all family members?

Employers with less than 10 employees

• Just because you can, doesn’t mean you should.

Worksite Approval Paperwork

Use the Electronic Packet

• Value of Electronic Packets• No omissions • Completes duplicate info• Sets correct enrollment,

deduction, and effective dates• Gives reminder to get roster

Reviewing the Packet

• Number of eligible employees. Must be at least three. The smaller the case, the more diligent QM has to be getting first bill paid.

• The more contact info, the better. Owner is not always best person to verify roster.

• 4. Any mode selected other than Monthly requires a conversation with the Agent/Manager

• 8. Make sure dates are correct on paper packets

Understanding Billing Payment Frequency

Payment Modes

• The selections made on the Worksite Approval Paperwork are critical

• They determine the rates the employees will be quotes, based on their deduction type

• And they determine how much premium and how often the company will be billed

Payment Modes

Payment Mode

Number Bills Per Year

Weekly 52

Bi-Weekly 26

Semi-Monthly 24

Every 4 Weeks

Monthly 12

Payment Modes

• We always want the employer to pay their bill monthly. Why?• Most other bills (rent, electric) are paid monthly• Fewest number of times they have to pay• Any other payment mode, they will not receive a

late bill• Reporting easier to inspect

Monthly Bill

• Bookkeeper should pay the amount on the bill• Every 13 weeks the deductions and billing will

balance out to $0

Monthly Bill

• Bookkeeper should pay the amount on the bill• The amount deducted may not match the bill

• Every 13 weeks the deductions and billing will balance out to $0

MarchFour Fridays

AprilFour Fridays

MayFive Fridays

Deducted $120

Monthly Bill = $130 Weekly Deduct = $30

Premiums DeductedFrom Employees

Paycheck

Wk 1 $30

Wk 2 $30

Wk 3 $30

Wk 4 $30

Deducted $120

Paycheck

Wk 1 $30

Wk 2 $30

Wk 3 $30

Wk 4 $30

Deducted $150

Paycheck

Wk 1 $30

Wk 2 $30

Wk 3 $30

Wk 5 $30

Wk 4 $30

Billed $130Billed $130 Billed $130

Total Deducted $390Total Billed $390

4-Week Bill

• Some government entities/non-profits will request a 4-week bill

• 4-week bills are easy because you pay what you deduct

• Bookkeepers mistakenly believe that because she has paid all 12 months, she has paid all her bills

• 4-Week Billings will receive 13 bills per year, not 12• There are 52 weeks in a year, not 48• If bookkeeper pay 12 times a year on a 4-week bill,

they will be one month behind after one year and two months behind after two years, then lapse

Bi-weekly vs. Semi-monthly

• There are 52 weeks in a year• Bi-weekly pay mode means 26 payments. They

should be set up on Monthly bill to reduce number of payments

• Semi-monthly pay mode means 24 payments. They should be set up on Monthly bill to reduce number of payments

• Some companies pay their employees bi-weekly (26 times a year) but on two paychecks a year, they don’t take any deductions, meaning they should be on a semi-monthly bill (24 times a year)

Better Enrollments

Employee Not Eligible

Worksite Reasons for Declines

Declines• Ineligible employee

Every Agent Must Have…

• Roster• And know how to read it!

How to Read the Roster….

So what do we do …

• When an employee approaches us?• When they are on the roster but not eligible?• When they are not on the roster at all?

• The employee’s word carries no weight. • It only matters what’s on the roster.

• Note: Employees are eligible if they hit their 6-month or 1-year mark during the enrollment period.

Common causes for declines

• Employee may have had a break in employment• Employee have been part-time• Employee may be contract, 1099, leased• If you they eapp give you an error, the employee is

not eligible…

So what do we do …

Worksite Reasons for Declines

Declines• Only 1 policy per family or individual• Amount exceeds limits• Ineligible dependent• Dependent not eligible without employee

coverage

What Policies Can I Only Have One?

• Accident Protector Max• Cancer Care/Plus• Cancer Endurance

What Policies Can I More Than One?

• Group Term• Career Life Plus• Cash Cancer• Critical Illness

Where do I find this info?

• Click on Products• Select your state

Where do I find this info?

• On the Product Page• Click Marketplace Bulletin

Marketplace Bulletin

Face AMT: Face amount of the policy. Group Term.

Marketplace Bulletin: Career Life Plus

Marketplace Bulletin: Cash Cancer

Marketplace Bulletin: Critical Illness

ADB: Amount of Accidental Death Benefit.

Example 1

ADB Examples

ADB: Cannot exceed $300,000

Example 1

ADB Examples

ADB: Cannot exceed $300,000

State Specific Exceptions: Group Term

Group Term No. 9

• Only question on Group Term that can be answered ‘yes’ and be issued standard

• Can only be ‘yes’ for high blood pressure• HBP must be controlled (140/90)

Group Term No. 9

• Questions to ask:• What did you answer yes to?• If HBP, what was your last reading?• What medications do you take? Dosage?

Frequency?• Do you have any other health issues I haven’t asked

you about?

Group Term to Career Life Plus

• If they don’t qualify for Group Term, sell them Career Life Plus

• Career Life Plus is guaranteed issue for the EMPLOYEE with a minimum face amount of $1,000

• Health Questions are different on Career Life Plus

Collecting phone numbers on the eapp…

• Only reason we would call a Worksite customer is if they have left their job. So why would we only collect an office number?

Re-Enrollments

Every Agent Must Have…

• Roster• Worksite Management Information Report (AL915)

for re-enrollments• And know how to read them!

Worksite Management Information Report

Re-enrollments: Is the business paid current? If not, don’t re-enroll until business has paid current.

PLN Column: This is the Plan Code for the policy.• Found in Policy Identity and Prefix Book found in

the Quality Section of Agent Services

Common Codes

E09: Group Term 100

E13: Group Term PU65

1U Series: Career Life Plus

HAM: Accident Protector Max

5K Series: Cancer Care

LS: Cash Cancer

Solidifying the Sale: Last 3 Minutes

Every Employee Must Clearly Understand

The last three minutes of every sale is where quality business is nailed down. Every employee must understand three things to avoid Not Takens.

•What did I buy?•How much does it cost?•How often does it come out of my check?

Needs Planner

• Give it to the customer to take home• Only circle what they purchased• Only write how much is coming out of each paycheck

Needs Planner

Surprises Kill All Deals

Relationship With The Bookkeeper

Enrollment PeriodJuly

Deduction PeriodAugust

Effective PeriodSeptember

LateOctober

Bills Mailedor E-mailed

EnrollmentConducted

Verify PDAuthorizations

Delivered

Bill Due

VerifyDeductions

Started

VerifyBill

Received

LateE-Mail

From HO

LukeInvolved

CommissionChargeback

NotTakenStatus

------------LettersMailed

The Three Periods of Worksite

Premiums DeductedFrom Employee Paycheck

The No. 1 Reason

• Worksite cases blow up is because authorizations are not delivered on time and deductions never start or start late

Relationship With The Bookkeeper

Setting it up right …

• When securing the paperwork, use the points to remember to get owner buy-in on seeing all employees

Using the Points to Remember

IRS Qualified Family Status Changes

• Marriage• Divorce• Death of a Spouse or Child• Birth or Adoption of a Child• Change of spouse’s employment• Termination

PD Authorization

Worksite Case Checklist

• Follow-up, who is responsible, date completed

Email From Home Office

• Sent on 16th of month

Red Alert

• PD01001: Franchise Initial Premium Unpaid (Daily)

The Worksite Timeline

49 days late

Policies lapse, agents and managers charged back commission, polices show as lapsed in transaction register

60 days late

Letter generated from the Home Office to all policyholders and Employer

Letter Customers Receive

Letter Employer Receives

The Worksite Timeline

After 60 Days

Case must go through reinstatement process requiring all back premiums and letter from business stating premiums have been continuously deducted, no claims have been filed, and the employer understands Liberty will not reinstate their policies if this happens again.

What happens every week?

• Last week of October• Were authorizations for October enrollments and

re-enrollment turned in to bookkeeper?• First week of November

• Did deductions start for October enrollments?• Second week of November

• Did September enrollments receive first bill?• Third week of November

• Are all cases paid for November?

Questions to ask your SAs and Agents

• Worksite• Were any hire dates different than the roster?• Were there any ‘Yes’ answers on Group Term No. 9?• What was the most premium sold in one house?• Did everyone take home a Needs Planner?• When are you scheduled to meet the bookkeeper?

• Individual• Where did you get this lead?• How many referrals did you get?• What was their income?• Did the customer pick Option 1 or Option 2?• What health questions did they answer ‘yes’ to?• Did you get a check?• What did they say when you read the WCN Form?

Agency Owner: Red Alert

• AL040001: Worksite List By Franchise (Saturdays)

Agency Director/Agent: Red Alert

• AL915: Worksite Management Information Report

Impact of Not-Takens

• This is what it looks like on a production report when a worksite case is not taken

DCN Detail Report Example

Avoiding Adverse Business

Top Adverse Issues

• Not sending an email to personalbusiness@libnat.com before submitting personal business

• Repeated bad banking information and/or NSFs• Same address or bank account as the Agent or

another Agent• Wrong height/weight or birthday• QAC cannot reach applicant as phone number• Writing ineligible employees that are not on

roster

Personal Business

In the E-app, the question reads “Are you a member ofthe Agent’s immediate family?”

So who is immediate family?Agent, Spouse, Mother, Father, Brother, Sister, Children, and

Grandchildren Agents may submit an app on immediate family membersprovided an e-mail is sent in advance topersonalbusiness@libnat.com

Commissions are paid into the commission account. No submit advance or bonus will be paid on personal business.Personal business rules do not apply to worksite sales.

tmk1536 092910agent training only. not for sales use. writing quality business updated december 2014...

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