An Ethos policy replacement occurs when a new application is submitted through the Ethos platform for a client who already has coverage through Ethos with the intent to replace the existing policy.
- Timeline: The original policy was in force within the last three months through Ethos.
- Product Type: The new application is for the same product type or category (for example, replacing one Final Expense product with another).
- Carrier: The policy may be from the same or a different carrier.
- Agent: The application may be submitted by the agent who wrote the original policy or by a different agent or agency.
Ethos policy replacements are flagged because they often:
- Do not serve the best interest of the client
- Are submitted to generate additional compensation
- Lower overall persistency rates
- May unfairly result in chargebacks for the original writing agent
Compensation
At Ethos, our priority is protecting clients and supporting ethical sales practices. If a policy is confirmed as an Ethos policy replacement, compensation will not be paid.
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