Quoting - What Does It Mean? How Is It Done?

Quoting Means Nothing!
When an individual contacts a broker or searches on line, or contacts insurance companies for quotes, he/she is not aware of the ramifications of this procedure he just has initiated. Agents usually will quote rates on a “preferred” rating. A preferred rating is considered to be one of the best ratings an individual can obtained.

This technique provides you with the lowest premium quote available for the specific product of interest. This technique is used to perk your interest and generate a signed application to that company. Once the signed application is received (by the insurance company) you have authorized the insurance company and the underwriter to obtain all necessary information to begin the underwriting process.

During this underwriting process, all medical information received including any medical examinations is reported to the MIB (Medical Information Bureau). This bureau makes itself available and provides all medical history to any and all insurance carriers and their underwriters to assist them in providing an offer! Any and ALL medical information is reported to the MIB.

QUOTING HAS NO MEANING AT ALL. Usually "preferred" rates are quoted. After the insurance underwriter receives the application and reviews all medical history and any examination results, the quote then turns into an actual offer. This offer can be what was quoted or increased or a declination can occur.

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I DO IT DIFFERENTLY

I obtain as much medical information as possible prior to submitting an application, or initiate the underwriting process. I then review this information along with several general agencies and insurance brokers, who evaluate the medical information initially provided prior to submission of a signed application. This procedure usually provides me with a hypothetical offer. Most of all, this procedure allows an individual to actually obtain a tentative offer “without reporting information to the MIB”.

The tentative offers become an actual offer once the individual completes, signs the application, and complies with any requirements requested by the insurance company. If the applicant's medical information is confirmed as stated previously, and the information on the application coincides with the medical information that was stated on the application, usually the tentative offers turns to the actual offer.

This procedure is extremely important, because when shopping for quotes each insurance company has different underwriting guidelines. Those guidelines can allow insurance companies to issue anywhere from a"preferred to a declined offer".

That is why it is so important to use this method. This method avoids up front reporting of detrimental information that would or, could prevent an individual from obtaining any life or, health insurance.