Prequalifying Prospects for Long Term Care Insurance
Every interaction with a potential client creates the risk for a future E&O claim, especially when you do not exercise routine procedures.
If someone contacts you about Long Term Care Insurance, it is a smart practice to prequalify that person by telephone. Failing to make the time to prequalify a potential client could result in pursuing a sale that will never happen. It is in your best interest to manage your time and travel costs effectively. A prescreening phone call will also provide the opportunity to begin a professional relationship with the prospect(s).
You’ll want to ask if the person has ever been declined or rated-up for Long Term Care Insurance and the reason(s) why. All LTC Insurers do not underwrite the same, but the response to this question could present a red flag. You never want a potential client believing they are automatically eligible for a policy just because you had a conversation with them. A good E&O risk management procedure is to state, in writing, that the final decision for eligibility and premium remains with the Underwriting Department at the Insurance Company.