Just because a company has a "wealthy" parent company doesn't mean anything as each company stands on its own...Before the AIG crisis, AGLA had all over their brochure "An AIG Company." Then when AIG got in trouble, they immediately came out with new brochures and in very fine print that stated they were an AIG subsidiary but that their assess were totally separate from AIG." It is misleading to tell someone they have insurance with 150 year old Manhattan when it is with Western National.. It is OK to tell them the business is being place with Western National, a Manhattan Company.
Is It a Lie
- Thread starter somarco
- Start date
- 15,041
So who is your car insurance with?
JimmyCrappedCorn
Guru
- 282
Geico. I called in and bought it over the phone and handle it completely over the net now.
- 15,041
Great, now go look at the card and tell me who really insures you car. Because I guarantee you it isn't "Geico", but some Geico company.
JimmyCrappedCorn
Guru
- 282
I looked and the only name mentioned is Geico.
- 6,462
Dear Jimmy,
Not an agent.
In this, and other posts, you come across as a very arrogant and supercilious individual.
Based on character behind posts, there are others whose opinions about the Medicare market I would find believable before yours.
Based on your comments, inquiring as a non agent, there is a question that comes to mind. If the companies are all the same, why do state insurance regulators allow them to file and charge different rates for the same Medigap policies (or policy forms-whichever is the technically correct formulation of the question)?
- 15,041
I haven't seen a Geico card in a long time, so no idea where they disclose it, but with almost certainty the writing company is Geico of XYZ or some other name with Geico as the master company.
JimmyCrappedCorn
Guru
- 282
Its a tit for tat technicality. Its as simple as that. Of course they are the same company. Its just a way for a company to get around a law or regulation. The government regulation in simplicity states that after the first couple of years an insurance company must base their premium rates on actual claims experience. In short the government had to make that rule or Blue Cross and Blue Shield would sell their insurance at a loss for a few years and drive all the other insurance companies out of the market and then Blue Cross could charge whatever they wanted. So the Departments of insurance came up with that rule and Blue Cross figured out away to get around it. Blue Cross decided they would just invent a new policy after a few years and get around the rule that way. Blue Cross pulled this stunt for awhile and Mutual of Omaha decided they would do it to. So Mutual of Omaha started doing it and they now have morphed into 4 different names that are all still really Mutual of Omaha. Now we have other companies doing it to such as Manhattan. What this really means is that many of the companies are not making much money on these policies.
If they are the same company, why do they have to have different state filings? It's because they are two different companies with the same parent company. Western United even has a separate home office than Manhattan Life. The point is, Western United only recently started offering Med Supps in Georgia and there is no claims history on that product. And for anyone to imply that Western United has been in the Med Supp business as long as Manhattan Life has been is just lying.
Manhattan has a history of coming in low with their various carriers (Manhattan Life, Manhattan Life Assurance, Family Life and Western United) and within 2-3 years they are no longer competitive and raise rates on the current block pretty significantly. I have one client who is stuck with Family Life. They have averaged a rate increase of 9.5% per year for the last 8 years (starting premium 01/01/2010 was $125.24 - today it is $258.54).
As you may have read, this guy said something to Bob about 4% rate increases. Where do you think he got that figure? I'm willing to bet the agent mentioned it. I'd be willing to bet everything I own that over the next 5-10 years they will average more than 4%. Probably closer to twice that amount, if not more. I'm also willing to bet that Western United won't be a player in the Georgia Med Supp market 5 years from now.
Don't get me wrong, more and more companies are playing this game. But just because they have the same parent company doesn't mean they are the same company. They could sell off any of those companies tomorrow. For example, they could decide they no longer want to have Family Life's portfolio of products and sell it to another company. That would mean Family Life would be under a different parent company and Manhattan Life would remain. Same goes for any of the other holdings by Manhattan Insurance Group. They aren't the same company no matter how much you want to believe they are.
XpressInsurance
Super Genius
- 244
I personally explain, the Aetna companies ACI & CLI along with MOO companies.
If you look at the customer ID cards with Aetna. The Aetna logo in the upper left hand corner is larger than the total of space of the words- American Continental Insurance Company on the right side of the card, so what is brand message is Aetna pushing.
If you look at the customer ID cards with Aetna. The Aetna logo in the upper left hand corner is larger than the total of space of the words- American Continental Insurance Company on the right side of the card, so what is brand message is Aetna pushing.
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