Q. for Assurant About 0% Commission Major Med:

[MaryDallas]

A. Hi Mary,

Yes, this was released several months ago, but as of January 19, 2015, we have temporarily stopped paying commissions on our major medical plans. Ultimately, we had some record sales months, and have to make sure that we are growing and taking new business on at an appropriate rate. Since we are outside of open enrollment at this point, this should not have much affect on your bottom line, and we fully plan on bringing commissions back with the start of the next open enrollment period.

Please also keep in mind that this effected new major medical business only. Any in force business is not effected, nor does this effect the commission rates on our short term medical and supplemental product line. If you'd like to discuss this further, please feel free to call me directly.

 

[AllenChicago]

Assurant had "record sales months" without paying commissions. If true, why would they even consider paying commissions again? If you follow that logic, they should stop paying commissions on every product and watch sales and revenue zoom to the stratosphere!

 

[Yagents]

You always do that allen. You don't read it correctly. They had record sales months before they stopped paying commissions.

I'm out of business if they don't pay comm next year. They represent a 1/3rd of my income for past 2 years.

 

[MaryDallas]

I had not planned to write Assurant for 2015: their rates were 30-40% higher on major med. I do write their supplements. I'm not sure how they got so much business during open enrollment after seeing their rates. They were astronomical!

When I responded back and said this is perceived by the agent/broker as trying to get rid of us and it appears Assurant does not value the agent/broker .... this is the answer I got:

'Hi Mary,

I can assure you that is not the case and we are not trying to cut the agents out of the picture. Seeing as we do not spend money advertising through billboards and TV to the general populous, we rely on our agents to advertise for us. Again, we had some very high sales months and needed to make sure we grew at an appropriate rate. We made the change knowing that agents would stop selling the product, we were not looking for agents to continue to sell for no commission.'

Obviously, they didn't want any business from us.

 

[FLM2]

A. Hi Mary,

Yes, this was released several months ago, but as of January 19, 2015, we have temporarily stopped paying commissions on our major medical plans. Ultimately, we had some record sales months, and have to make sure that we are growing and taking new business on at an appropriate rate. Since we are outside of open enrollment at this point, this should not have much affect on your bottom line, and we fully plan on bringing commissions back with the start of the next open enrollment period.

Please also keep in mind that this effected new major medical business only. Any in force business is not effected, nor does this effect the commission rates on our short term medical and supplemental product line. If you'd like to discuss this further, please feel free to call me directly.

There are at least two of us on this forum who wrote $1M+ personally for Assurant in the past year and neither of us has received any word from them about coming back with commissions during the next OEP.

Whoever wrote this is talking out of their ass, there is no official story or commitment from Assurant, just speculation. They are paying all commissions due (that is never an issue with them) but that's it until they make a formal announcement (if ever).

 

[Yagents]

They were king p.p.o. in Florida. Best priced

 

[MaryDallas]

There are at least two of us on this forum who wrote $1M+ personally for Assurant in the past year and neither of us has received any word from them about coming back with commissions during the next OEP.

Whoever wrote this is talking out of their ass, there is no official story or commitment from Assurant, just speculation. They are paying all commissions due (that is never an issue with them) but that's it until they make a formal announcement (if ever).

This was from Ashley S. in their WI office: she works with the Dallas sales force. You may want to ask? I asked, however, I am sure this is not 'the official' announcement.

----------

They were king p.p.o. in Florida. Best priced

I really like (or liked) Assurant. I'm not sure why they were so expensive in Texas this year. Their short-term is still priced good.

 

[FLM2]

This was from Ashley S. in their WI office: she works with the Dallas sales force. You may want to ask? I asked, however, I am sure this is not 'the official' announcement.

----------

I have asked and not received anything close to what you got from Ashley S. Nothing has been decided or released as of this week regardless of what you are being told.

I hope Assurant comes back with a reasonable commission structure (I was asked by my RSD for input) but, if they do, they had better return their customer service for both clients and agents to something that is acceptable-their current support is atrocious and they will lose many subscribers at the end of the year regardless of anything else.

 

[AllenChicago]

You always do that allen. You don't read it correctly. They had record sales months before they stopped paying commissions.

YAgents, are you saying that Assurant brokers were selling too many policies, so the company decided to throttle back sales by eliminating new business commissions?

 

[Yagents]

Correct allen...................................70+ % of their sales are broker sold