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Some of my agents are receiving the following notification today from an e-mail blast from Stonebridge Life.
I believe it's wrong to terminate an agent's advances without warning or prior policy notification at all. This will, in my opinion, have a negative impact on the selection of Stonebridge with this kind of punitive action without prior notice.
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Original email is here.
Important part highlighted below:
It is the goal of state insurance regulators to ensure that Medicare Supplement purchasers who are eligible for coverage should have full market access to coverage. The goal is to protect consumers in their quest for desired coverage at a competitive market price.
At the same time, it is fundamental to any functioning pool of insurance policies that rate stability depends on maintaining an appropriate mix of insureds of varying risk classifications. Producers whose business mix is an outlier with regards to claims loss ratios when compared with other producers in the same marketplace, can destabilize the pool and lead to excessive rate increases, which can affect and jeopardize the financial health of the entire pool.
Stonebridge Life Insurance Company asks its producers to solicit and submit a balanced portfolio of Medicare Supplement policies that reflects a cross-section of Medicare beneficiaries, without turning down or otherwise restricting applicants in a guaranteed issue situation or other applicants who are attracted to Stonebridge as a competitive carrier.
We have examined the loss ratios of your business and determined that your business mix qualifies as an outlier, so we are exercising our rights under Section 5 of your Producer Agreement and Sections 4 and 6 of your Agreement for Commission Annualization and terminating the Agreement for Commission Annualization. We will continue to monitor your business, and if your loss ratios come back in to line, we will consider reinstating commission advances upon your request. We will also consider any other factors that you or your upline wish to present, including whether you are writing a desirable profile of insureds which produces financially viable business, whether you are writing in an important location, or anything else that you wish us to consider. Please remember that Stonebridge will continue to accept all applications in accordance with its stated rules and practices, and you will be paid commissions as outlined in your commission schedule.
I believe it's wrong to terminate an agent's advances without warning or prior policy notification at all. This will, in my opinion, have a negative impact on the selection of Stonebridge with this kind of punitive action without prior notice.
----
Original email is here.
Important part highlighted below:
It is the goal of state insurance regulators to ensure that Medicare Supplement purchasers who are eligible for coverage should have full market access to coverage. The goal is to protect consumers in their quest for desired coverage at a competitive market price.
At the same time, it is fundamental to any functioning pool of insurance policies that rate stability depends on maintaining an appropriate mix of insureds of varying risk classifications. Producers whose business mix is an outlier with regards to claims loss ratios when compared with other producers in the same marketplace, can destabilize the pool and lead to excessive rate increases, which can affect and jeopardize the financial health of the entire pool.
Stonebridge Life Insurance Company asks its producers to solicit and submit a balanced portfolio of Medicare Supplement policies that reflects a cross-section of Medicare beneficiaries, without turning down or otherwise restricting applicants in a guaranteed issue situation or other applicants who are attracted to Stonebridge as a competitive carrier.
We have examined the loss ratios of your business and determined that your business mix qualifies as an outlier, so we are exercising our rights under Section 5 of your Producer Agreement and Sections 4 and 6 of your Agreement for Commission Annualization and terminating the Agreement for Commission Annualization. We will continue to monitor your business, and if your loss ratios come back in to line, we will consider reinstating commission advances upon your request. We will also consider any other factors that you or your upline wish to present, including whether you are writing a desirable profile of insureds which produces financially viable business, whether you are writing in an important location, or anything else that you wish us to consider. Please remember that Stonebridge will continue to accept all applications in accordance with its stated rules and practices, and you will be paid commissions as outlined in your commission schedule.