Insurance Agent Forum

[al3]

I'm so angry.

I've wrote a case with Aetna that was rated up. Level-A premium was $241. Aetna rated case up to Level-B which made it $301.

I expected to be paid 20% of Level-A (also a rip, but an argument for another day). Most carriers only pay on the tier-1 (or first level, etc).

Instead I was paid 16% of Level-B... which was 4 cents less.

241 X .20= 48.20
301 X .16 = 48.16

It's only 4 cents, but the I know where I stand with the company... and it will be a cold day in hell before I write another case for them.

I called Agent support and the women on the phone could care less. She gets her salary no matter WHAT I get paid.

I would take it to a higher level, but it would just be a wase of my time.

I'm relatively new to this insurance business, but I've never seen an industry that has such a high disdain for its salespeople and looks for creative ways to 'screw' them out of their earned commissions. Maybe it's just the healthcare segment, but I think I understand why the turnover and burn-out rate of agents is so high and why young people don't want to enter the business.

Al

[healthagent]

Two companies really value their sales force - Golden Rule and Assurant. The rest could really care less.

[STIBROKER@AUSTIN.RR.COM]

Originally Posted by john_petrowski

Two companies really value their sales force - Golden Rule and Assurant. The rest could really care less.

yea and both give you renewals on the original prem. of like 3% to 5% .....I have co's that give me 10% on current prem. not what the policy sold for 4 years ago....now thats agent love....but really guys .....who ever is going to issue my client their best deal is what plays in my book....not how much I make on the case.....and if I have a shot at the 10% renewal for life plan and it works for my client then its a win / win scenario....

[healthagent]

The best deal is subjective and is on a case by case basis. When I place someone with Aetna it's because I can't place them anywhere else. Aetna in MD takes type 2 diabetics. No other carrier will touch 'em.

[al3]

Originally Posted by STIBROKER@AUSTIN.RR.COM

who ever is going to issue my client their best deal is what plays in my book....not how much I make on the case.....and if I have a shot at the 10% renewal for life plan and it works for my client then its a win / win scenario....

I write Aetna when I can't place with either Blue. Although the Blues are not loved here in CA, there is a lot of skeptisim of Aetna by a number of very experienced agents (and I'm not one of them!) Aetna has come into CA after a long absense and is undercutting the Blues on PPO plans by 10 to 15% in price. They also have the easiest underwriting I've seen.

However many think that Aetna is scarfing up lots of business so that they can hit everyone with a HUGE rate increase. and hope enough stays on the books so they can make a pile of money.

There are also rumors that Aetna is doing a lot of post-claim underwriting.... but since I only sell their HDHP HSA policies, I doubt any of my cases have filed a claim yet.

And as for commission, it is not the amount of money I get, but I don't want to be screwed either. It's only 4 cents, but the principle to me is HUGE.

I really like Colonial. They treat their agents like 'gold' (we're NOT captive), they hire really high-quality people, and they do a good job training us and giving us support to maket in the worksite area. Yes, I compete against AFLAC, but in one way it helps me. I just say "We're a better alternative than the company with the duck" and propects instantly know what I'm pitching... or at least have an idea.

You know, if (state) governments decide to put us all out of business and all the health carriers close down, I'm not so sure that I would cry a whole lot of tears.

I only hope that life, anunity, carriers treat their salespeople better than the healthcare carriers do. I have a feeling that I may find out sooner rather than later! There is no great love for the private health ins. sector here in CA.

Al

[healthagent]

Well that's exactly what they did in MD. Came in Jan of '04 with rates lower than the other carriers and if you didn't have terminal brain cancer you got a policy. I bit down like a pit bull.

Now? Except for a few clients who because of health can't cancel my entire book has be moved. The "double whammy" rate increases for new age block combined with their regular increase destroys people. There's also zero renewal options.

Family of 4 age 40 in 2004? $383 per month. Same family now? $616. That's about 62% in 2 years. No thank you.

[CHUMPS FROM OXFORD]

Fortunately, in Ohio, Aetna has not had those big rate increases. We have an Aetna rate increase of 12% scheduled for July, but coverage will increase as well.

I use Aetna sparingly. But if you smoke and have five kids...their rates are good.

[healthagent]

I don't like renting insurance plans. I have three clients trapped on Aetna, can't afford the increase and I can't move 'em anywhere else because of health. They don't qualify for the state plan since you can't cancel in-force coverage to go on the plan. At the next increase they'll have two options: A: Cancel and go without insurance. B: Go into the financial crapper trying to pay the premiums. One told me "I'm sorry I listened to you." Comments like that really get to me.

I need plans with renewal options so unhealthy people can actually keep the coverage. It doesn't matter if you raise your deductible to keep the rate lower, just the fact that the rate can be manageable.

Originally Posted by john_petrowski

I don't like renting insurance plans.

What a great way to put that. I'm going to borrow that from you John when trying to explain to people that cheapest is not always greatest.

[STIBROKER@AUSTIN.RR.COM]

Originally Posted by john_petrowski

One told me "I'm sorry I listened to you." Comments like that really get to me.

Thats BS....I would have told him that he had no chose back then....and with the texas risk pool you can go from indy to pool at anytime.......

[Dave020]

Originally Posted by al3

I expected to be paid 20% of Level-A (also a rip, but an argument for another day). Most carriers only pay on the tier-1 (or first level, etc).

Instead I was paid 16% of Level-B... which was 4 cents less.

241 X .20= 48.20
301 X .16 = 48.16

Blue Cross CA is doing the same thing now, just made the change either 3/1 or 4/1 I believe. Shield has always done it this way.

Dave
www.davefluker.com

[K-Dub]

Originally Posted by STIBROKER@AUSTIN.RR.COM

but really guys .....who ever is going to issue my client their best deal is what plays in my book....not how much I make on the case.

Exactly!! Do the right thing and the money will follow! If you honestly recommend a plan that pays the highest commission but also has the highest premiums, guess who is going to back door you?? ME!!! I look out for the best interest of my clients, not the best interest of me!! I'm sure I'm the minority with that thinking though....which is good, keeps the money rolling in with all the replacements I write.

It goes like this, and don't forget it "100% (or highest commission rate) of 0 is still 0, after I replace your overpriced policy".

All it took for me to permanently take Aetna out of my portfolio (except for a brochure to mention they aren't good at paying claims) was the realization that not only are commissions paid as earned, they wait 90 days to start.

Sorry, I'm not in business to provide a company the size of Aetna with free financing...

[STIBROKER@AUSTIN.RR.COM]

Originally Posted by Mike_Golden1

All it took for me to permanently take Aetna out of my portfolio (except for a brochure to mention they aren't good at paying claims) was the realization that not only are commissions paid as earned, they wait 90 days to start.

Sorry, I'm not in business to provide a company the size of Aetna with free financing...

Originally Posted by STIBROKER@AUSTIN.RR.COM

Considering that is what an experience agent from this forum told me and that I have yet to see a commission for a case that went active on January 30th maybe you should take that pancake and bunny and put it somewhere else.

[STIBROKER@AUSTIN.RR.COM]

Originally Posted by Mike_Golden1

Considering that is what an experience agent from this forum told me and that I have yet to see a commission for a case that went active on January 30th .....

Hummmmmm.....first off I try really hard not to believe anything anyone tells me with out confirming it and as far a getting paid from aetna has always been on the up and up.....have you called commissions......