Regulations for Med Supp Mailers

[Talliet]

Was thinking about doing some direct mail for med supps in IL, so I called the DOI to see what would have to be submitted, so as not to get in trouble. I was told that independent producers must follow Section 363a of the IL insurance code, which means we have to put an insurance company's (or more than one company's) name and physical address on all our mailings. Our address as an agent doesn't count.

I asked if this was the case even for agents who represent more than one insurance company because we don't know what company will best fit the prospect until after we speak with him/her. Their rep checked with her supervisor then said that, yes, we would have to put at least one insurance company name and address on all direct mail pieces. If we included sample quotes, we could just use the quoted companies, but if we had no quotes to be in compliance we would have to list the names and addresses of ALL the companies we contract with for med supps (not sure the insurance companies would okay any of this on an agent's mail piece).

She said they very recently fined someone for sending out generic med supp direct mail. So, I guess, in IL sending out an "Are you paying too much for your Medicare Supplement" card could get very expensive for agents.

Back to cold calling purgatory for me...

 

[GreenSky]

Why not just put in the text something like "we represent most of the carriers in the state including......"?

That way you're promoted yourself as independent while complying with your stupid rules.

Rick

 

[yaknow1]

"...enabling us to provide you with the lowest prices."

 

[Talliet]

It's the insurance company's address inclusion requirement that seems really stupid and is going to take up a lot of space.

Wouldn't the use of any insurance company name and address have to be run by that insurance company for approval too?

 

[jemelton]

what state are you in.......that sounds ignorant to me.

 

[senior-advisor-indiana]

what state are you in.......that sounds ignorant to me.

I'll go out on a limb here and guess IL.

 

[GreenSky]

I'll go out on a limb here and guess IL.

Wow! Some kind of 6th sense?

Rick

 

[Talliet]

Yes, the People's Republic of IL, where they tax you on the cheese you buy in WI but eat in Chicago (really, it's called the IL use tax).


Here's the referenced part of the IL insurance code: (215 ILCS 5/363a) (from Ch. 73, par. 975a)
Sec. 363a. Medicare supplement policies; disclosure, advertising, loss ratio standards.
(1) Scope. This Section pertains to disclosure requirements of companies and agents and mandatory and prohibited practices of agents...
(2) Advertising. An advertisement that describes or offers to provide information concerning the federal Medicare program shall comply with all of the following:

(d) It must prominently identify and set forth the
actual address of the insurer or insurers that issue the coverage.
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For some reason what I type under the copy and pasting in the above post doesn't show up. Anyway, I called the IDOI to ask about the address requirement and was told by a supervisor that agents using direct mailpieces must include at least one name and address of an insurance company they're contracted with for med supps. If we have sample quotes we can just use the companies' names and addresses that go with the quotes. If we don't have sample quotes we should provide the names and addresses of all the companies we contract with for med supps. I questioned all of this because, frankly, it's stupid, but that's how it is. They are fining agents for non-compliance.

I totally agree with the suggestion above to put more than one insurance company name and address on the mailpiece, but I think in our contracts we're required to submit any ads that use the insurance company's name to the company for approval first. Are insurance companies going to be ok with agents sending out mailers with their name and address right next to their competitors'?
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Senior-advisor-indiana is a super-genius!

 

[GreenSky]

Senior-advisor-indiana is a super-genius!

And Obama is the bestest president ever!

Rick

 

[elder]

Call a lead house like lead connection or kramer and ask what they do for drops in IL, if they can do it (blind leads) so can you. Calling the DOI, in my experience, is like calling Medicare, different answers with each person you talk to. I had a DOI lawyer that said I was in violation because I cold called for supps, she wanted to charge me with 10K violations. Stupid Bi-otch! double check with the mail houses.
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And Obama is the bestest president ever!

Rick

I agree. No time to talk, I gotta go feed my unicorns.