The things I am about to describe really happened recently. The names and a few of the unimportant details have been changed to protect the privacy of everyone involved. So here is what happened...
One of my agents was following up on a request that someone had made on our website for term life insurance rates. As part of the follow up process, we routinely verify the information that was supplied online and also gather a few pieces of information that the online form does not ask (specific health issues, family health history, etc.). We do this so that we can do what is called "field underwriting". This process allows us to shop for the best carrier given an individual's unique situation. As independent agents, we shop the whole market and some carriers are better than others for certain situations. One company might be a better choice than another for someone with a parent who died of cancer at age 62, Yet another company might be best for someone with a DUI 2 years ago, etc. We intentionally ask open-ended questions in an effort to gather as much detail as possible because it helps us to find the right choice for each consumer.
During the conversation, my agent asked the consumer about his family's health history with respect to cancer, heart disease and stroke. She left the question open-ended, not specifying an age, but just asking the consumer to tell her if there was any history and if so, what it was. The consumer became very agitated at her and abruptly ended the phone call, telling her that the questions weren't necessary or appropriate. I instructed my agent to send a short email to the consumer explaining our reason for gathering such information. Shortly after she sent that email, the consumer replied with an email telling her that her "open-ended questions were unreasonable and irrational" and that they "may be unethical because they intentionally place people in a higher rate group leading to higher insurance rates, generating more profits for the company and a disservice to the consumer".
Okay folks, here's the deal: As agents, we don't set rates or determine what rate group an individual is in! That is the job of the insurance company's underwriting team. When we ask questions about your situation, we are working for you, trying to find the best fit for your insurance needs. We are trying to shop for you and give you accurate prices. We aren't out to somehow manipulate you into paying more than you should for something. We couldn't do that if we tried. Because we don't set the rates!
The job of an independent agent is to find the products that are best for you. That's why we ask those (sometimes uncomfortable) questions. So take a tip from me when you go shopping for insurance: Let you agent do his job. Answer his questions. Make him work for you. You will be better off
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