2009 Medsupp Premium Increases

[policy doctor]

They placed a limit last few months. Can't remember exactly when but i may have posted this.

I use some FMO out of AZ ..ii'll send you a pm when i find the phone # and name. I never remember them.

 

[azmedsupagent]

I believe you will find that increases are state specific. Just because increases with an individual company occur in one state does not mean that it will be the same nation wide. Increases are triggered by claims filed.

You will get better information if you identify a specific state.

In Missouri Continental Life took a 25% increase and I believe American Continental is going up 18%. They are both owned by Genworth. I believe that Continental Life was a much better company with it was still owned by Randall Baskins. They have definitely fallen out of grace with me.

American National and National States are currently the ones who I am writing for, however, National States has filed for a rate increase which may put them on my "also ran" list.

My bad your right, I should have been more specific... Any premium increases in Arizona with United world, AARP, American Republic? Im talking existing enrollee premium increases not new enrollee premium increases...

 

[Newby]

American National and National States are currently the ones who I am writing for, however, National States has filed for a rate increase which may put them on my "also ran" list.

Frank, are you talking about THIS National States? National States Products Page

I have not found them to be a quality company at all. But it may just be the local reps. I think they have a very low AM Best rating from last I checked.

 

[Russ]

Frank, are you talking about THIS National States? National States Products Page

I have not found them to be a quality company at all. But it may just be the local reps. I think they have a very low AM Best rating from last I checked.

B- rated on AM Best. Tried to link their page and it won't let me.

 

[Frank Stastny]

And how long has National States newest MedSupp been in your market and how big of an "filed" increase?

Who did you go through for National State and American National or did you go direct?

I am licensed direct with them, well sorta kinda.

An Illinois agent called to order a copy of Your Insurance Office. He also works the senior market so we started talking about selling Med Supps. During the conversation I asked him about premiums and commissions. He said he had been with them "for ever" and had a very good contract, way above what the FMO's were offering (20%).

I asked him why he was selling insurance instead of offering contracts. (He didn't know he could do that.) I told him he could easily offer a 23% contract to agents and still have a little for him to make each time an agent made a sale. Needless to say that is what he is now doing. I have a 23% contract with them.

If you want to send me an e-mail I can put you in touch with him and you too can have a 23% contract. No, I don't make a thing off of it. He is a nice guy and I would like to help him out.

The increase they filed for isn't nearly as important as what the Dept. of Insurance grants. Many times the two are not even close. No one will know until he DOI announces what the increase is that they have approved.
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B- rated on AM Best. Tried to link their page and it won't let me.

Their web address is Welcome To National States Insurance

I hear a lot about AM Best ratings of insurance companies. Their ratings are important in most areas of insurance. However, when it comes to companies selling Med Supp insurance I personally do not think it matters very much whether the company has a C+ or an A++ rating.

The companies are going to pay claims like a fixed slot machine as long as Medicare approves the charges. They have to. If a company goes broke the Med Supp client will have the option of taking their insurance with another company.

I'm very comfortable representing National States and am not even a little bit concerned about what their AM Best rating may be. My clients will receive an excellent policy and outstanding service.
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Frank, are you talking about THIS National States? National States Products Page

I have not found them to be a quality company at all. But it may just be the local reps. I think they have a very low AM Best rating from last I checked.

Yes, that is the company.

I'm not sure what you mean by a "quality company". The only rep I know who works for them is the guy who I am licensed through and he has been great in all my dealings with him. I wish all the agents I have know were just like him.

I have already sold several policies for them and everything went very smooth and when I had questions they were always answered with a "smile".

If there is something undesirable about them I have not experienced it yet. I can only tell you what I have seen and so far I am very comfortable recommending them to prospects.

 

[policy doctor]

When I first started in insurance in 1977 National States was the company and med supps and nursing home policies were what we sold. The agency was very successful with them; especially in Florida, and the co paid the claims without a problem. Don't know if they're in GA, ( i know they do life ins) but perhaps I could get that agent's phone #. Perhaps I'll go full circle on that one.

 

[Frank Stastny]

When I first started in insurance in 1977 National States was the company and med supps and nursing home policies were what we sold. The agency was very successful with them; especially in Florida, and the co paid the claims without a problem. Don't know if they're in GA, ( i know they do life ins) but perhaps I could get that agent's phone #. Perhaps I'll go full circle on that one.

I just tried to call him and got his voice mail. I don't want to post his contact information here without first asking if it is okay to do so.

Send me an e-mail and I will gladly give it to you. I think you will fine him very genuine and enjoyable to deal with. At least I have.
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In an earlier post in this thread I said,

"National States has filed for a rate increase which may put them on my "also ran" list".

I missread the information I received from them. The increase was for their Stand Alone Home Health Care Policy, not their Medicare Supplement policies.

The hurrier I go the behinder I get.

 

[G.Gordon]

I'm sorta with Frank on the subject of company "ratings".

The companies, benefits, etc., are so tightly regulated that a companies rating does not indicate ability or will to pay claims. It does however have an impact on premium rate increases. Look at every shallow pocketed company that has been out in the past five years: RNA, Sterling, Admiral, etc... they can't stay in the market for a year without a double digit increase. Why... they can't tolerate moderate claims losses without passing it along.

IMO... deeper pockets = lower rate increases. I've seen it in practice by observing all the companies that sell in Missouri and Kansas. The AnTex and Mutual O. companies have been able to be viable players for 3-5 years with the same book of business. A company like Admiral (NR as in Not Rated) with very shallow pockets... took considerable increases within the first year on the street.

The American Cont. book has been the biggest disapointment and challenge to this rule though. They haven't been out very long and just took 18% in Missouri. With the GE purse I'd of thought they would have remained as stable as Cont Life was... guess not. I've got a ton of clients that will be with them only ONE year due to this. Pass through companies like them frustrate the client and agent alike.

 

[Russ]

I'm sorta with Frank on the subject of company "ratings".

The companies, benefits, etc., are so tightly regulated that a companies rating does not indicate ability or will to pay claims. It does however have an impact on premium rate increases. Look at every shallow pocketed company that has been out in the past five years: RNA, Sterling, Admiral, etc... they can't stay in the market for a year without a double digit increase. Why... they can't tolerate moderate claims losses without passing it along.

IMO... deeper pockets = lower rate increases. I've seen it in practice by observing all the companies that sell in Missouri and Kansas. The AnTex and Mutual O. companies have been able to be viable players for 3-5 years with the same book of business. A company like Admiral (NR as in Not Rated) with very shallow pockets... took considerable increases within the first year on the street.

The American Cont. book has been the biggest disapointment and challenge to this rule though. They haven't been out very long and just took 18% in Missouri. With the GE purse I'd of thought they would have remained as stable as Cont Life was... guess not. I've got a ton of clients that will be with them only ONE year due to this. Pass through companies like them frustrate the client and agent alike.

American Continental here in Florida came out, I believe, in 2007. Their rates were basically the same as Continental Life. I never went through the BS of getting licensed with them.

Continental Life contract I have is terrible....13% commission...6 month advance and the phone interview before issue. You make around $100 on each application. I quit writing it a couple of years ago. Their life products paid 105% and the rates were better than Shenandoah Life. Unfortunately, they just withdrew ALL life products and as of now, have no plans to bring them back out in Florida.

Won't American Continental cancel your contract for replacing business and keep your future commissions if they find out?

 

[Newby]

I'm sorta with Frank on the subject of company "ratings".

The companies, benefits, etc., are so tightly regulated that a companies rating does not indicate ability or will to pay claims. It does however have an impact on premium rate increases. Look at every shallow pocketed company that has been out in the past five years: RNA, Sterling, Admiral, etc... they can't stay in the market for a year without a double digit increase. Why... they can't tolerate moderate claims losses without passing it along.

IMO... deeper pockets = lower rate increases. I've seen it in practice by observing all the companies that sell in Missouri and Kansas. The AnTex and Mutual O. companies have been able to be viable players for 3-5 years with the same book of business. A company like Admiral (NR as in Not Rated) with very shallow pockets... took considerable increases within the first year on the street.

The American Cont. book has been the biggest disapointment and challenge to this rule though. They haven't been out very long and just took 18% in Missouri. With the GE purse I'd of thought they would have remained as stable as Cont Life was... guess not. I've got a ton of clients that will be with them only ONE year due to this. Pass through companies like them frustrate the client and agent alike.

I can see it with Med Sups but I would NEVER sell a Long-Term Care policy from a weak no-name low-rated company like National States.

Just one look at their web site just screams "We MIGHT be here next year too." Something about them doesn't pass the smell test with me.