These questions and answers dign into the details of the process of conversion from an expiring modernLINK policy to an AMsuite-issued policy.
American Modern is rolling out new insurance programs with more options and discounts. The new programs are being offered through a new underwriting company – American Modern Property and Casualty Insurance Company (AMP&C). These programs are also quoted only through AMsuite, the new quoting and policy management tool you have been using. A step-by-step process is needed to convert a customer from their current underwriting company to AMP&C.
Unfortunately, insurance and banking regulations do not allow American Modern to simply move a customer’s policy from one underwriting company to another, even when both are owned by American Modern. In most states, the transfer must be treated as a non-renewal accompanied by an offer of a new policy. The process is similar to your moving a policy or book of business from one carrier to another. It is important that you be ready to explain this unfamiliar process to your customers.
We are also unable to simply reinitiate any automatic payments that a customer have authorized. That permission will need to be given for the new policy.
The communication process will start 45 to 90 days prior to the conversion start date (the date the first of the old policies expire). It varies by state. Check the calendar for exact dates for your state.
Not all of your policies will convert at once. In fact, depending on your book of business, you may not see any conversions for a month or more after we technically start the process for your state. For example, if your state’s conversion start date is in June, customers that just renewed in March will remain with that policy until the following March. But a policy with an August date will be offered a replacement policy through AMP&C.
Policies are not converted in mass. Instead, each individual policy follows its own schedule starting on a date determined by each state’s DOI.
Your agency’s management system may already provide you with what you need. All agents have access to each letter sent to your own customers, as well as the policy offer once it is generated and sent. These documents will be attached to the customer account in AMsuite.
American Modern will be sending three letters to help customers understand what is happening, and what they need to do. This will begin several months before the policy expiration date.
Letter 1 is a “heads-up” that the renewal process will not be automatic. No customer responses is needed at this point.
Letter 2 informs the customer that insurance scoring will be part of the new policy offer, and that they can opt-out if they want. No customer response is needed unless they choose to opt-out.
Letter 3 is a packet of materials including the new policy offer. The customer must make an initial payment to activate the policy’s coverage prior to the expiration of the current policy.
Customers need to make a decision to accept the new policy offer. They do so by making an initial payment, and signing any required forms (such as UM/UIM). We are making it simple by introducing a new Pay and Sign tool so that customers can quickly do it all online.
All of the new insurance programs use insurance scoring as part of the rate determination. The customer has a two-week window in which to reply to the opt-out letter. If we do not hear back from a customer, then we will create and send a policy offer using an insurance score. If a customer opts-out, then we will not generate a replacement policy offer. The old policy will simply expire at the end of its term.
The billing invoice is mailed separately, in part, to give it more visibility. It can be overlooked in the policy offer packet. It is mailed a few days later to ensure that it arrives after the policy offer. Customers who delay making a payment on the offer will receive a billing notice about two weeks prior to the old policy expiration. That will be their last communication from us about the offer.
Customers having payments automatically withdrawn from a bank account, or charged to a credit card, must sign up again for EZPay. This can be done very simply using a new online form. Look for an EZPay instruction sheet on the Resource Center. Customers getting their policy documents electronically via Online Services do not need to re-enroll to maintain that access.
Because banking regulations do not allow us to automatically re-enroll a customer, the policy offer to customers with EZPay on the expiring policy will include the 6-pay plan, the closest available option to EZPay’s monthly schedule. Customers on EZPay need to re-enroll.
Because the policy number is changing, customers need to be sure reference the new policy number, or request that the bank updates its records for any payment it process on behalf of the policyholder.
Most agents send policy change requests to American Modern’s agent support team. For this special conversion, agents can send an email with the change request to firstname.lastname@example.org. A dedicated team is in place to manage changes to an expiring policy between the time the customer communication process starts and when the current policy expires. That team also supports any change to the policy offer, such as a different deductible, limit, or coverage option. Once the new policy is in effect, you can make policy changes yourself at any time.
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