Assurant Pulls the Plug Who's Next?

[sunkarma11]

Reserves. It's all about the company's ability to back claims... too many clients = not enough reserves = DOI takeover and company shut down.

They are taking steps to ensure that they are not shut down, which in turn means there is enough in the coffers to pay the agents for the business given to them - I can't see this as a bad thing...

I would rather they take steps to survive (which any one of us would do if backed into a similar corner) and make good on what is owed to us for prior submission than to get shut down and not pay us anything at all...

They will learn from their experience this year and be back next year with a better game plan that will keep them going longer - this is why you want a portfolio with several options to work with... have yourself diversified into several territories (if not states) and be flexible, ready to duck and weave as needed - turn the leads off the Assurant targeted markets and turn on the other guys...

Survival of the fittest... very Darwinian

 

[FLM2]

Important notice regarding commission changes
Assurant Health has made the decision to reduce individual major medical commissions in
Florida, Georgia, Indiana, Michigan, Nevada, Pennsylvania and Texas to 0% for new business.
• This change will apply to all new business submitted on or after January 19, 2015, with
an effective date on or after March 1, 2015.
• For all the business you’ve previously written, rest assured you’ll be paid according to the current commission structure—this change does not impact that business.
• Our supplemental products are not impacted by any of these changes.
• While the strong sales we’ve seen are important, the changes we’re making to our sales
approach in these markets will ensure overall profitable growth to meet the long-term
commitments to our agents and shareholders—and help us meet the service and support
expectations of our customers.

 

[sk337sk337]

The only way I found out was by filling out a healthcare.gov app today and CHA was no longer an option. Last night I was still able to see their plans on healthcare.gov so this has been an overnight change.

One of my colleagues got the scoop that it is for the rest of the year, I haven't heard anything official actually. I think they have been overwhelmed with the number of enrollments.

Hoping I get paid on the business I have already written with them.

I called yesterday and they said they did hit their max on enrollment. The rep said they just got a notice yesterday. I'm going to call and find out about the commissions this morning.

 

[jbage007]

I called yesterday and they said they did hit their max on enrollment. The rep said they just got a notice yesterday. I'm going to call and find out about the commissions this morning.

max?
There's a max on enrollment?

 

[Yagents]

Yup, there is max enrollment

I find this related to Assurant's move:

Tennessee Insurer Hits Enrollment Goals, Removes Plans From Federal Marketplace.

The Tennessean Share to FacebookShare to Twitter (1/16, Fletcher) reports that Community Health Alliance of Knoxville, Tennessee has removed its health insurance plans from the Federal marketplace as of Jan. 15 because it has reached its enrollment goals after “the first two months of open enrollment.” According to the article, CHA decided to remove its plans because it “wanted to make sure that it could maintain reliable customer service for those it had enrolled rather than tax its infrastructure with more enrollees.” The article reports, “This is the first such case of an insurer taking its products off the market over demand, said a spokesman for U.S. Centers for Medicare and Medicaid Services in Washington, D.C.”

Community Health pulls plans after meeting ACA goals

 

[somarco]

Carrier rating makes no difference when comp goes to $0

 

[bobson]

Carrier rating makes no difference when comp goes to $0

That's the same compensation the first lady gets for being first lady. Don't complain...

 

[jbage007]

I have it on good authority that it was the Assurant Board of Directors in New York who pulled the plug based on the volume of business being written in those seven states combined with growing apprehension regarding legislation now pending in Congress that essentially would remove the risk pool backstop from all of the carriers participating in the Marketplace and would return 100% risk to each respective carrier.

 

[insurance404]

I'm in WA and get a 7.5% Assurant commission. However I have high volume of sales...

They are about 10% - 15% more expensive than Premera Blue Cross, so not selling quite as much this year.

The Assurant Platinum plan is amazing though!!!

Definitely have already been diversifying my 90% individual health revenue book of business into other areas.

 

[cwynnins]

FL Blue is still dragging there feet on payments from last year....