Just Got 5 Stars New Rates

[Meghan28]

I could not agree more Petey. It's too bad they used to be worth it. I mean really 5 year renewals? When everyone else does min 10 years. Why would anyone write them? Idk maybe I am missing something here?

 

[moonlightandmargaritas]

I mean really 5 year renewals? When everyone else does min 10 years. Why would anyone write them? Idk maybe I am missing something here?

Here's what you are missing: they aren't profitable. That attracts attention from regulators. If you lose money long enough...

 

[The Admiral]

Here's what you are missing: they aren't profitable. That attracts attention from regulators. If you lose money long enough...

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Many carriers don't have a clue how to make a profit in the final expense market. Either they don't understand the market, don't have qualified staff who know how to manage the business, or don't have IT systems in place to generate the data needed, or are just wanting the production numbers. Most carriers pay their exec's bonuses based on production with no regard to profitability.

It is important for us as agents to do our due diligence in investigating the financial condition of carriers before blindly signing a contract to represent them. A carrier with limited capital and surplus which can't support a significant amount of new business must seek additional capital or re-insurance. Most of us here are smart enough to know, when re-insurance is required, then rates will be raised, commissions reduced, and/or underwriting tightened. Obviously, 5Star woke up as to losing money and has obtained re-insurance... thus the changes.

 

[Jack B]

-------------------------- Many carriers don't have a clue how to make a profit in the final expense market. Either they don't understand the market, don't have qualified staff who know how to manage the business, or don't have IT systems in place to generate the data needed, or are just wanting the production numbers. Most carriers pay their exec's bonuses based on production with no regard to profitability. It is important for us as agents to do our due diligence in investigating the financial condition of carriers before blindly signing a contract to represent them. A carrier with limited capital and surplus which can't support a significant amount of new business must seek additional capital or re-insurance. Most of us here are smart enough to know, when re-insurance is required, then rates will be raised, commissions reduced, and/or underwriting tightened. Obviously, 5Star woke up as to losing money and has obtained re-insurance... thus the changes.

Why should we worry about all that? We are independent, if a company becomes unattractive, just write a different company.

 

[JoshC]

No all other policies grandfathered in.Outside graded no reason to write them

Still a great option for insulin use starting in the 40s, insulin use combined with a previous heart issue, and they do take all methods of payment. I'm sure there will still be uses for them, just not as many considering the renewal situation.

 

[rousemark]

Still a great option for insulin use starting in the 40s, insulin use combined with a previous heart issue, and they do take all methods of payment. I'm sure there will still be uses for them, just not as many considering the renewal situation.

Then you run afoul of their minimum production requirements.

 

[Todd King]

Still a great option for insulin use starting in the 40s, insulin use combined with a previous heart issue, and they do take all methods of payment. I'm sure there will still be uses for them, just not as many considering the renewal situation.

Josh, I don't know if you've heard or not, but RNA is now available in SC. You might want to take a look at them now.

 

[VolAgent]

Josh, I don't know if you've heard or not, but RNA is now available in SC. You might want to take a look at them now.

It sounds like FexQuotes needs to be updated. Also, I don't see any forms for South Carolina.

 

[JoshC]

Josh, I don't know if you've heard or not, but RNA is now available in SC. You might want to take a look at them now.

Thanks. I have them for NC, hadn't heard they were in SC now.

 

[mbiallas]

This doesn't surprise me at all. I always felt their graded rates were too low. Sounds like it is still a sellable product. Cutting the renewals stinks though. Seems to me they should have increased rates a touch more so as not to stick a finger in the eye of their agents.