The first life insurance policy sold as such is widely believed to be one on the life of one William Gybbons for a one year term, a face amount of 400 pounds, and a premium of 32 pounds. Unfortunately (my assumption, not necessarily reflective of the emotions of his widow, heirs or associates, but strong presumptive evidence suggests it to be the feeling of the insurers) Mr. Gybbons expired shortly before the policy did, prompting not only the first death claim, but also the first instance of life insurance litigation. It seems the gentlemen jointly insuring his life attempted to assert that the 12 month term was intended to be measured in lunar months rather than calendar months—an argument not upheld by the court presiding.
I’ll make the giant leap that the case of Mr. Gybbons had at least some butterfly effect on the focus of this month’s issue—the impaired risk. I would fancifully suggest that had the insurers been able to take a closer look at a variety of factors surrounding Mr. Gybbons’ life—his health, occupation, lifestyle, family history, etc.—they might have been better able to assess his mortality and decide either to charge a higher premium, exclude certain circumstances or decline to accept the risk. Perhaps not—maybe he was perfectly healthy and just stepped in front of a runaway carriage.
It’s not nearly so wide a leap to trace the origins of brokerage to the impaired risk—substandard business. Years ago most career companies wanted mainly “healthy” business, and those with health impairments were declined. A few intrepid wholesalers and carriers made their living finding and providing coverage—typically more expensive—for these declined individuals and their families. Agents with declined clients went to substandard agencies that would in turn shop the cases through their lineup of carriers to find the most favorable rating for the proposed insured.
Today brokerage encompasses much more than finding coverage for those with health impairments, but the underlying premise remains—finding the best possible coverage for the client, his family, his business and his employees. Most BGAs count their prowess at aiding the impaired risk as a strong contributing factor to the relationships they are able to form with independent agents and financial planners, leading them to establish new levels of service to consumers via case management, internal underwriting and assessment, and business continuation, estate and legacy planning expertise.
Central to all is that service to the consumer is paramount. Helping the person with a health impairment find coverage that will benefit his family at a price he can afford where others either could not, or would not, truly sets the independent agent and the BGA apart. [SPH]
A significant fact central to the success of the agent and the potential benefit to those he would come in contact with is that he simply has the motivation to set out each day to help someone—breadwinner, family, business owner or group of employees. Pursuant to that, Broker World friend and editorial contributor Ken Smith, Assurity Life, has published a book entitled Sales Lessons from the Masters in which he explores the sales techniques, principles and philosophies of four insurance industry icons: Frank Bettger, W. Clement Stone, Ben Feldman and Joe Gandolfo. Smith devotes a chapter to each of these sales giants and then outlines the common denominators that made each of these men successful. In his forward to the book, John F. Nichols, president of Disability Resource Group, states that “The most important person today is you…because of your application of these sales principles, you will be positively serving others with your products and services.” He goes on to add, “Let these universal principles positively impact you and those who come into your life.” To obtain the book or communicate with Ken Smith, email him at Ken@kensmithsales.com. [SPH]
Sad news for many in the BGA and carrier community, as Linda Zuckerman, wife of Gordon Zuckerman, Murray and Zuckerman, Inc., Schenectady, NY, passed away on September 23. Although not active in the industry, Linda frequently shared her great smile with me and many others at various industry events, most frequently for me at the NAILBA conferences. In my experience she was a warm, caring person who never failed to greet me with enthusiasm and a friendly hug. She will be missed by many. [SPH]
Also lost was Marilyn Lampert, wife of Arnold and mother of Tony, Professional Planners Marketing Group, Palm Beach, FL. Although they sold the agency a few years ago, many still remember Arnold, Marilyn and Tony, fixtures at NAILBA meetings and qualifying guests at more company trips than one could count. Our condolences go out to the Lampert family and all others who held Marilyn dear. [SPH]
