Download - Writing Quality Business
Agent training only. Not for sales use. LNL2280 0313
Writing Quality Business
Agent training only. Not for sales use. LNL2280 0313
Agent training only. Not for sales use. LNL2280 0313
Recap of Changes Impacting Quality
•Increasing Direct Pay on Section 125 Worksite cases must qualify (70%)
•Increasing max amount of Direct Pay per policy ($600)
•Increasing AP per sale with Laptop implementation
•Increasing AP per sale with needs based Worksite sale
But at the same time…
•Increasing impact of poor DCN & Persistency on Direct Pay including total loss of Direct Pay
•Increasing impact of poor DCN & Persistency on ability to earn bonus
Agent training only. Not for sales use. LNL2280 0313
What’s in it for you?
• Make more money by writing quality business
• Make more money by helping your Agents write quality business
• Make more money by retaining Agents
Agent training only. Not for sales use. LNL2280 0313
It’s not how much you write, it’s how much you keep.
TMK1536 092910 Agent training only. Not for sales use.
Agent training only. Not for sales use. LNL2280 0313
Where can I find this information?
Quality and Compensation Information foundin the Guide to Growth on Agent Services:
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Guide to Growth
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Where can I find this information?
Individual underwriting rules found in the Agent Instruction Guide on Agent’s Services:
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Agents Instruction Guide
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Where can I find this information?
Worksite guidelines are found in the Worksite Agent Guide on Agent Services:
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Worksite Agent Guide
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Where can I find this information?
Reports at a Glance and Steps to Control DCN/Persistency are found on Agent Services:
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What is DCN?
Declines (1%): Primarily worksite. Poor training, systems, and oversight.
Cancellations (3%): Primarily individual. Poor training,
systems and oversight.
Not-Takens (5%): Primarily worksite. Poor training, systems and oversight.
Company DCN 9% as of Jan. 2013
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Top Reasons For Declines
Declines (1%) Only 1 policy per family or individual
Ineligible dependent
Dependent not eligible without employee coverage
Medical history
Not employed long enough
Amount exceeds limits
Agent training only. Not for sales use. LNL2280 0313
Top Reasons for Cancels
Cancellations (3%) Non Sufficient Funds/Bad Bank Information
Outdated COD
Requested by customer (QAC)
QAC not completed
Oral swab not complete
Additional underwriting call, exam not complete
Medical records not complete
Agent training only. Not for sales use. LNL2280 0313
Top Reasons for Not Takens
Not-Taken (6%) Payment not received for entire worksite case
Payment not received from worksite customer, changes mind
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New DCN and Persistency Reports are published on the
25th of each month.
Agent training only. Not for sales use. LNL2280 0313
Agent training only. Not for sales use. LNL2280 0313
How is DCN calculated?
Declined Premium
Cancelled Premium
Not Taken Premium
Submitted Premium
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Example of 8% DCN
$0 Declines
$300 Cancels
$500 Not Takens
$10,000 Submitted Premium
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Example: Calculating Individual DCN
AUG25
SEPT24
OCT24
NOV24
DEC24
DEC25
DCNCalculated
Reports Published
$4,000 $4,000 $4,000
$100 $350 $350 $200
Submitted Business
Declined, Cancelled, Not Taken Premium
Agent training only. Not for sales use. LNL2280 0313
Example: Calculating Payroll Deduction DCN
JUNE
25JULY
24AUG
24SEPT
24OCT
24NOV
24DEC
24DEC
25
DCNCalculated
Reports Published
$4,000 $4,000 $4,000
$0 $0 $400 $0 $0 $600
Submitted Business
Declined, Cancelled, Not Taken Premium
Agent training only. Not for sales use. LNL2280 0313
Definitions
Persistency: Premium issued and paid four months or longer, divided by total issued business based on policy effective date
Agent training only. Not for sales use. LNL2280 0313
Example: Calculating Persistency
APRIL
25MAY
24JUNE
24JULY
24AUG
24SEPT
24OCT
24NOV
24DEC
24DEC
25
PersistencyCalculated
1 2 3 Reports Published
Paid 4 months or greater
$5,000 $5,000 $5,000
$12,000Issued Business
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Example of 88% 4-Month Persistency
$8,800 Paid 4 Months
$10,000 Issued
Premium
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Example: Calculating 13-month persistency
AUG11
SEPT11
OCT11
NOV11
DEC11
JAN12
FEB12
MAR12
APR12
MAY12
JUNE12
JULY12
AUG12
SEPT12
OCT12
NOV12
DEC12
Paid 13 months
$9,000
$4000
$4000
$4000
Issued Business
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Example of 75% 13-Month Persistency
$9,000 Paid 13 Months
$12,000 Issued
Premium
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How does Quality impact pay & retention?
• 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%
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How does Quality impact pay & retention?
• Chargebacks• Direct pay submit advance commissions
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How does Quality impact pay & retention?
• Chargebacks• Direct pay submit advance commissions
Agent training only. Not for sales use. LNL2280 0313
Manager 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)
Agent training only. Not for sales use. LNL2280 0313
How does Quality impact pay & retention?
• Chargebacks• Direct pay submit advance commissions• DCN+Lapses subtracted from gross submit for bonus
Agent training only. Not for sales use. LNL2280 0313
How does Quality impact pay & retention?
• Chargebacks• Direct pay submit advance commissions• DCN+Lapses subtracted from gross submit for bonus• DCN: Bonus multiplier first 7 months
Agent training only. Not for sales use. LNL2280 0313
How does Quality impact pay & retention?
• Chargebacks • Direct pay submit advance commissions• DCN+Lapses subtracted from gross submit for bonus• DCN: Bonus multiplier first 7 months• Persistency: Bonus multiplier month 8 and beyond
Agent training only. Not for sales use. LNL2280 0313
How does Quality impact pay & retention?
• 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
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Oh by the way … Career Track
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So how does that translate to dollars?
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Agent training only. Not for sales use. LNL2280 0313
What does an 8 vs. 18 DCN mean to an Agent in his first seven
months with a $1,400 per week average?
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Agent training only. Not for sales use. LNL2280 0313
Take Home Pay
8 DCN Agent takes home $8,400 more
Agent training only. Not for sales use. LNL2280 0313
Agent training only. Not for sales use. LNL2280 0313
So when is a good time to train on Quality?
Agent training only. Not for sales use. LNL2280 0313
Agent training only. Not for sales use. LNL2280 0313
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
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Individual Business A-250 Application
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Agent training only. Not for sales use. LNL2280 0313
Top Reasons for Cancels
Cancellations (3%) Non Sufficient Funds/Bad Bank Information
Outdated COD
Requested by customer (QAC)
QAC not completed
Oral swab not complete
Additional underwriting call, exam not complete
Medical records not complete
Agent training only. Not for sales use. LNL2280 0313
Agent’s Instruction Guide
Review the key points in the Agent’s Instruction Guide:
Save it to the desktop of the Agent’s computer when the Laptop Sales Presentation is installed.
Agent training only. Not for sales use. LNL2280 0313
Automatic Decline Conditions
Applicants with the following conditions will be automatically declined:•Terminal Illness
•Lou Gehrig’s Disease or Amyotrophic Lateral Sclerosis (ALS)
•HIV / AIDS or Positive Test to Antibodies for AIDS virus
•Alzheimer’s Disease or Senile Dementia
•Confined to a hospital or nursing facility
•Use of illegal drugs (except marijuana) within a two-year period
•Confined to jail
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Underwriting Requirements Chart
When is the Agent required to get an Oral Swab?
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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 can destroy sample.
Agent training only. Not for sales use. LNL2280 0313
Underwriting Requirements Chart
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Build Charts
If the proposed insured does not fall within the standard weight limits shown on the chart, the proposed insured will be rated. (Charts CI/GTL/CLP).
Agent training only. Not for sales use. LNL2280 0313
Medical History Guide
Lists conditions and “general” guidelines
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ALX Only
Do not submit an application for standard issue for the following conditions.
An ALX will be considered if the underwriters determine the proposed insured is eligible for coverage.
•Heart / Circulatory / Blood Disorders
•Diabetes and Related Disorders
•Cancers
•Misc. Medical Disorders
•Disability
•Height/Weight
•Habits
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Quality During the Presentation:
Setting Correct Expectations
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Open your eyes and ears open
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What questions can you ask an applicant in
normal conversation to determine if
you should present ALX?
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Agent training only. Not for sales use. LNL2280 0313
• Have you ever had cancer?
• Have you ever had diabetes?
• Have you ever had heart problems or high blood pressure?
• What medications are you taking? (Look up using smartphone)
• Are you receiving disability income?
• How’s your driving record?
TMK1536 0410 Agent training only. Not for sales use.
Agent training only. Not for sales use. LNL2280 0313
“Great news! We have a policy specifically designed for people with
your health conditions.”
TMK1536 0410 Agent training only. Not for sales use.
Agent training only. Not for sales use. LNL2280 0313
Trial Applications
On cases with that appear to be medically
questionable, the best thing to do is submit the
application on a trial basis.
• Apps over $1 million
• Collect no payment or app fee
• Does not count for submit for commissions or bonus until issue
• Does not count against DCN if declined or not taken by customer
Agent training only. Not for sales use. LNL2280 0313
So why don’t Agents use Trial applications?
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Agent training only. Not for sales use. LNL2280 0313
When does an individual policy go into effect?
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Agent training only. Not for sales use. LNL2280 0313
OMG, They Said Yes!
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Agent training only. Not for sales use. LNL2280 0313
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
Agent training only. Not for sales use. LNL2280 0313
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) or Chase Liquid
Agent training only. Not for sales use. LNL2280 0313
View their Drivers License
• This makes sure they have one• Not an ID card• Don’t use the Height or Weight on the Drivers
License
Agent training only. Not for sales use. LNL2280 0313
Social Security Number
• Must have one to purchase a policy
• If they provide a number that begins with a 9, it is not a Social Security number. It is an Individual Taxpayer Identification Number (ITIN) which cannot be used.
• An ITIN, or Individual Taxpayer Identification Number, is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN). It is a 9-digit number, beginning with the number "9", formatted like an SSN (NNN-NN-NNNN).
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Citizenship
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Draft Dates: Choose one between 1st – 10th
Initial Bank Draft happens first business day after upload to home office. But the second draft …
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Solidifying the Sale: Last 3 Minutes in the Home
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Use the Closing Script
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Use the Closing Script
• Sets expectations• One or more Quality Assurance Calls (QAC)• Medical Exam• Medical Records• Be back to deliver policy
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Quality After the Submit
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Agent training only. Not for sales use. LNL2280 0313
Provide Good Customer Service
• Return Phone Calls• Answer questions• Do what you said you were going to do
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Worksite
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Agent training only. Not for sales use. LNL2280 0313
Top Reasons For Declines
Declines (1%) Only 1 policy per family or individual
Ineligible dependent
Dependent not eligible without employee coverage
Medical history
Not employed long enough
Amount exceeds limits
Agent training only. Not for sales use. LNL2280 0313
Top Reasons for Not Takens
Not-Taken (6%) Payment not received for entire worksite case
Payment not received from worksite customer, changes mind
Agent training only. Not for sales use. LNL2280 0313
Better Prospecting
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Eligible Industries
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Approval Required Industries
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Better Enrollments
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Agent training only. Not for sales use. LNL2280 0313
Every Agent Must Have…
• Roster• Worksite Management Information Report (AL915) for
re-enrollments
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Eligible Employees
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Needs Planner
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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)
Agent training only. Not for sales use. LNL2280 0313
Collecting phone numbers on the eapp…
• Why would we only collect an office number?
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Relationship With The Bookkeeper
Agent training only. Not for sales use. LNL2280 0313
Worksite Case Checklist
• Follow-up, who is responsible, date completed
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Red Alert
• PD01001: Franchise Initial Premium Unpaid (Daily)
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What happens every week?
• Last week of January• Were deductions for January enrollments turned
in to bookkeeper?• First week of February
• Did deductions start for January enrollments?• Second week of February
• Did December enrollments receive first bill?• Third week of February
• Are all cases paid for February? (Use Worksite Management Information AL915 or Worksite List by Franchise AL04)
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Red Alert
• AL040001: Worksite List By Franchise (Saturdays)
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Impact of Not-Takens
• This is what it looks like on a production report when a worksite case is not taken
Agent training only. Not for sales use. LNL2280 0313
DCN Detail Report Example
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Agent training only. Not for sales use. LNL2280 0313
It’s not how much you write, it’s how much you keep.
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Agent training only. Not for sales use. LNL2280 0313
Adverse Business Department
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Agent training only. Not for sales use. LNL2280 0313
Top Adverse Issues
• Sets expectations• Not sending an email to
[email protected] before submitting personal business
• Repeated bad banking information and/or Non Sufficient Funds
• Same address or bank account as the Agent or another Agent
• Wrong height/weight or birthday• Writing ineligible employees that are not on roster
Agent training only. Not for sales use. LNL2280 0313
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, and Children Agents may submit an app on immediate family membersprovided an e-mail is sent in advance [email protected]
Commissions are paid into the commission account. No submit advance or bonus will be paid on personal business.