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- Mod or Questionnaire Request comes in from your email

- Download the Mod or fill out the questionnaire and save it to your computer

- Log in to DocuSign

2) Add/Upload Documents

3) Add Clients Name and Email

4) If you need to sign) Add your name and Email

5) If Sally needs to sign for a recode) Add Sally's name and email

6) Click "set signing order"

- Add signature & date prompt for each individual signee where needed

7) Email the document making sure the subject line of the email is

"policy number / clients last name" Subject : "87426472 Sample"

First 45

days check


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Good Afternoon Team,


The evaluation of in-house replacements has not changed in many years and this is a reminder of the guidelines.  Replacement of any existing policy with American Income is contrary to company policy. 


What is a replacement?  When a new policy is written and an old policy in the same household is disturbed (terminates or exercises a non-forfeiture option.)  It is also standard industry practice to consider a new sale a replacement if certain earmarks exist.  An obvious earmark would be when a new sale is made and a cash value loan is taken under an existing policy. 


Everyone needs to understand that no matter how valid the intent at the point of sale, subsequent termination or disturbance of an old policy in any way renders the new sale a ‘replacement.’  Most state regulations consider ‘replacement’ to mean any transaction that is known, or should be known, by the agent proposing new coverage and that by reason of such transaction existing insurance will be affected. 


What many agencies don’t understand is that a new sale is deemed a replacement if there is an existing policy disturbed 6 months before or 6 months after the new sale.  If an AIL policy terminates or other changes occur within 6 months before or 6 months after the new sale, the charge-back rule will apply.  That means all advance, commission and production on the new policy will be reversed, regardless of the type of coverage written.  If a pattern of abuse is identified outside of that 6 month period, or in some cases 12 months, other action will be taken.  


This does not prohibit conversions in accordance with policy terms and it does not prohibit adding new policies.  If conversions are written, the original hierarchy is protected and the new hierarchy will receive credit for the premium increase.  If new policies are added properly, all old policies will remain in force. 


We are required to retain information of replacements and report the information to the Department of Insurance when requested.  The information we are required to report is for periods longer than the 6 months used in AIL’s charge-back guidelines.





1. Life policy issued 12/01/02 and lapsed paid to 03/01/03. A reinstatement application dated 06/03/03 is picked up along with two months premium.


If a policy has lapsed in the first year of coverage, the premiums may be waived up to a maximum of 90 days and the premium collected will be used to pay premiums forward. In the above example, the premium would be waived to 06/01/03 and the premium collected would pay the June and July renewals. Upon completion of the reinstatement handling, the policy would be paid to 08/01/03.

2. Life policy issued 08/01/01 and lapsed paid to 02/01/03 with no cash value accumulations. A reinstatement application dated 06/08/03 and two months premium are collected. It is also requested the policy be redated in lieu of collecting all back premiums.


The determination for the number of months needed for redating is made by calculating the difference between the lapse date and the date of reinstatement. In the above example, there is a difference of 4 months. The issue date of the policy would be changed to 12/01/01 thus bumping up the paid to date to 06/01/03. The premium collected would pay the June and July renewals. At completion of reinstatement, the policy would be paid to 08/01/03.


3. Life policy issued 04/15/02 and lapsed paid to 02/15/03.


In this reinstatement situation, three months premium can be waived. Assume a reinstatement application is taken dated 06/12/03. There are several ways the reinstatement can be handled.


A. The premium can be waived to 04/15/03 and 3 months premium collected. The premium collected will pay the April, May and June renewals. At completion of reinstatement, the policy would be paid to 07/15/03.


B. The policy could be redated by 4 months (the difference between the lapse date 02/15/03 and the reinstatement app date of 06/12/03). That would change the issue date to 08/15/02 and bump up the paid to date to 06/15/03. One month’s premium can be collected to pay the June renewals. Upon completion of reinstatement, the policy would be paid to 07/15/03.

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