Is Equitable National backing out of the Medigap business nationally?

[Spud]

HI, did anyone else notice this firm moved out of their state? Idaho DOI was notified they will stop offering new policies in the state somewhere between early March thru late June.

The entered the Idaho market in 2nd qtr 2018...fairly quick departure.

Does anyone know why they did this?

 

[somarco]

Wouldn't surprise me. "New" owners apparently have no use for the Medicare market.

Following Equitable L&C pattern. Difference is L&C was in the Medicare business 30 years before bailing.

 

[goillini52]

Wouldn't surprise me. "New" owners apparently have no use for the Medicare market.

Following Equitable L&C pattern. Difference is L&C was in the Medicare business 30 years before bailing.

They wanted to pull out at the 1st of the year, but their reinsurer wouldn't let them,so they're looking at other options. This is what Heartland just told me.

The writing's on the wall. F*CK Equitable, they're in the trash can. Sterling destroyed a good company.

 

[Millwood]

The fact they actually withdrew is significant. Many states DOI won't let them re-enter that market for 5YRS if they withdraw. I think all Health policies were withdrawn for Equitable L&C nationally. Looks like they may be doing the same with Equitable National.

If I had to venture a guess it has something to do with their Legacy LTC block of business. it has to be killing them. Policies were overly generous i.e. 1.trigger benefit by your Doctors order vs ADL's 2.paid up policy for surviving spouse after 10 yrs. If spouse died before 10yrs continue paying couple premium till 10yrs is up... then policy was paid up. The vast majority written were husband , wife, lifetime benefit, compound inflation protection, 0 elimination.

They'll probably abandon EL&C and halt all health and accident with EN.

 

[somarco]

Why not just sell off the LTC block? Other carriers have done that.

 

[Millwood]

Why not just sell off the LTC block? Other carriers have done that.

Only a guess, but I don't think they can give it away. Would think a vast majority are paid up policies at this point. ( no premiums being paid). The company is on the hook for future claims and most had inflation protection.
I would think any old LTC block would be hard to sell let alone this one. And.....still getting paid 10% on actual premiums not initial premium.
I sold a ton of these in the day.

 

[somarco]

Only a guess, but I don't think they can give it away. Would think a vast majority are paid up policies at this point. ( no premiums being paid). The company is on the hook for future claims and most had inflation protection.
I would think any old LTC block would be hard to sell let alone this one. And.....still getting paid 10% on actual premiums not initial premium.
I sold a ton of these in the day.

What you are saying is the actuary that designed and priced this plan is probably asking if you want fries with your order now.

 

[goillini52]

The POS PHI with a decision is the main reason I liked them. The end is near.

"Telephonic Application Discontinuation -

This announcement is to officially notify producers that Equitable National Life has made the decision to discontinue telephonic new business application sales after
Friday, March 6th.

We will continue to accept new business paper applications and electronic applications (eApp). Please reach out to Agency Services at 844-502-6780 with any questions.

"

 

[vic120]

Wow Now who will take the COPD smoking cases

 

[somarco]

Wow Now who will take the COPD smoking cases

Last Dollar can tell you who he uses.