Once Again, Jack Bobo Hits A Home Run!

To The Editor:

Once again, our friend and colleague, Jack Bobo, has hit a home run! His column in the Sept. 29 issue was one of his very best, ever! Every muddleheaded politican needs to read his column, and then, read it again, and again, and again. Muddleheaded includes young and old on both sides of the political aisle!

The recent decline in membership field organizations such as the National Association of Insurance and Financial Advisors is because weve gone out of our way to diminish or eliminate the very fact that career life insurance professionals are different. Ive never really had any illusions during my career as to whether any stockbroker had my best interests at heart. My experience tells me that they would attack my policies and cash values at the drop of a hat.

Now, many life insurance companies are recruiting, saying things like, “Well, were just like all those other financial houses.” Today the lines have become so blurred that CLUs trade stock and CFPs sell life insurance.

In many companies its no longer anything special to be a career professional life underwriter. Somewhere along the line needs-based selling and building relationships fell victim to peddling a commodity (policy) so as to make a living.

Finally, it always was the agent, it still is the agent and hopefully companies will figure it out soon that without the agent, some of them are likely to have a fairly short future!

Id like to get an 8.5″ by 11″ copy of that plaque in Jacks article so I could hang it prominently in my office. Anyone thinking about making something like that available? Thank you.

A.V. MOXELY, CLU, LUTCF
Field Director
Northwestern Mutual Financial Network
as Vegas, Nev.

To The Editor:

I wish to respond to a paragraph in a Sept. 22 story on the Long Term Care model regulation that concerns complaints about LTC insurance. I have been working to change Wisconsins rule limiting first-year commissions on replacement sales. In so doing, I went through two years worth of complaints on LTC products.

Your article mentions that 70-80 complaints are received annually with problems involving rating and underwriting and claims handling.

In going through the claims, this is correct. The majority were people who were unhappy that they were rated due to diabetes, strokes, asthma, arthritis and other ailments for which a knowledgeable producer would expect a rating or declination. I wondered at the time why so many people would complain about this when relatively few complain to the insurance commissioner about paying extra for car insurance due to a few DWIs.

I concluded that the reason is related to articles like the one in the current Consumer Reports magazine (November 2003). They state that people should not consider buying LTC insurance until age 65 unless they have a chronic condition.

Due to abundant articles about LTCI with often confusing and contradictory claims, the public has come to the conclusion that its best not to buy LTCI until it is needed. That would be the only reason why so many people would complain to the insurance commissioner that their rating or denial of coverage is “unfair.”

Somehow we have anesthetized the public to the risk and led them to believe this coverage is readily available “when they need it.”

Your publication could do a great service by publicizing the fact that LTCI only can be underwritten and issued when prospects apply while healthy.

I will send this note to Van Ellet of AARP as well, as it has fostered similar thinking.

When the public understands that just like car insurance must be purchased before the accident, LTCI must be obtained while insurable, maybe the complaints will subside, agents will be forced through competition to be better trained, and we can appreciate LTCI as a risk management tool to pay bills we cannot, not something to buy at the last minute and then complain when we cant get preferred ratings.

ROMEO RAABE, LUTCF, LTCP
Green Bay, Wis.


Reproduced from National Underwriter Life & Health/Financial Services Edition, October 24, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.