Should We Have One Exam Company?
This is my response to an examiner's suggestion (on a discussion board) that examiners seek to create one exam company which would make insurance companies toe the line."One company? It's called a monopoly. And it's almost impossible to maintain unless the government's enforcing it. (Think first class mail service).
The closest we had to a monopoly of this sort was not that long ago, when a few companies such as Portamedic (not to pick on them) basically had all of the business. It was not a great time for examiners. And, to be frank, not a great time for our clients, the insurance companies.
There was no innovation. Low pay. And a take-it-or-leave-it mentality sometimes: both to the insurance company customers and examiners. (Not always, thankfully).
Why are there discounts? Because an exam company wants the business and is willing to cut their price to get it. If an examiner doesn't want to do the business at that price, it's their call.
Why are there set requirements? Because it's easier that way: for us, for the company, and for the agents. An underwriter doesn't have to make a judgement call on every case. And I can say for certain what a given policy will require at a given amount for a given age.
Why different forms? For a number of reasons. Different companies want different information. In many cases (think especially HIV/AIDS related questions) the forms reflect a given state's insurance commissioner requirements.
Haggling over bills? I have to speak frankly that I seldom get a question over an exam I've done. It happens maybe a couple of times a year, and I do thousands of exams a year. Sometimes it's a mistake I've made. Sometimes the insurance company makes a mistake. But to be honest, it's just not worth fretting about. Sure, it's irritating, especially when there's a charge-back. But here's a suggestion: do your job well, and there won't be many. And if an examiner goes into orbit because an insurance company occasionally questions a charge, the examiner might want to re-consider whether being independent is really for them.
The bottom line is that we are here to be of service. I genuinely like what I do, and try to remember that I'm here to serve: the person being examined, the insurance agent, the insurance company, and whatever exam company I'm working through on a particular case.
A monopoly's not going to happen. Because if by some sad miracle, one came into place, someone would start up a competitor. Competition is not a bad thing, it's a good thing. Competition keeps us on our toes, makes us more nimble, and does a better job."
posted by Jim Huffman @ 10:33 AM
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