Why Can't Get Money Back After Cancel Ins if Never Needed It?

[VolAgent]

I know the RSMs for one for-profit carrier have begged home office NOT to release commission cut rates until December (using the 30-day notification rule in the contract for agents) because they are afraid if they announce too soon, the NFPs will simply come in a point or two higher and snag the majority of agent business.

Competition is a good thing, too bad it is the NFP that are the source of it in California.

 

[Norwayguy]

Not for profit. I was looking at SB 890 or 900 in CA the other day and noticed something very interesting right in the bill itself. Carrier IFP medical loss ratios!

You guess it, in CA the two NFP carriers are both operating IFP blocks of business well above the 80% MLR threshold. The for-profits are not.

So, when the axe comes a-choppin', hmmmmmmmmmm.

I know the RSMs for one for-profit carrier have begged home office NOT to release commission cut rates until December (using the 30-day notification rule in the contract for agents) because they are afraid if they announce too soon, the NFPs will simply come in a point or two higher and snag the majority of agent business.

I know where some of these carriers can trim sales costs...Get rid of some of these salaried reps. I was in a similiar position about 6 years ago. Great American Flew my office out to the home office for a day of meetings and to wine and dine us...Only they had a problem, they knew the number #1 product we where selling was going to have a commission cut of 1/3 to be announced on Monday this was a Fri-Sun thing....They did the right thing and actually told us because as they said if they waited until we got back to our offices we would have known they knew before and didn't tell us.

 

[luis.stevens]

AARP has been sending me a "card" for about a year and a half now. One of these days I will probably pay the $16 or whatever and join.

You know I keep reading all these things people say about AARP. My take is, if it’s that bad, why do you join? I don’t understand, first they lap up the deals and then they slam the organization. Weird

 

[Alston]

Aren't loss ratios already linked to P&C agent's income and their ability to sell a given carrier?

I think this basic concept predates health care reform by decades.

Of course I've never heard of it in health insurance, but it is a classic pay for performance model that should be embraced by those who want a more capitalistic system.

After all this means that those who perform better will get paid more.

However, since this system would encourage agents to write fewer people who have significant health problems, the dems would probably be against it.

I don't see it happening. I don't think it should happen.

 

[VolAgent]

Just one problem with that, in P&C you can non-renew. You can't do that in health, and in life there is no point.

 

[Alston]

Just one problem with that, in P&C you can non-renew. You can't do that in health, and in life there is no point.

If an insurance company can affect commissions, bonuses and even an agent's ability to sell their products based on their loss ration, they can motivate agents to send them more profitable business in the future.

Being unable to non-renew existing business can make them even more motivated to get to make sure that new policyholders are less likely to make big claims.

There is "no point" in life only because it takes too long to determine whether an agent has a good or bad loss ratio.

 

[thall]

Someone please tell me this guy or gal is kidding! please! Of course I'm drawn to it like a fly.

 

[VolAgent]

If an insurance company can affect commissions, bonuses and even an agent's ability to sell their products based on their loss ration, they can motivate agents to send them more profitable business in the future.

Being unable to non-renew existing business can make them even more motivated to get to make sure that new policyholders are less likely to make big claims.

There is "no point" in life only because it takes too long to determine whether an agent has a good or bad loss ratio.

I think you would have to be crazy to agree to a situation like this.