Assurant Fined

somarco · 03-07-2007, 10:43 AM

http://blog.oregonlive.com/breakingn..._70000_fo.html

State insurance investigators said they found widespread violations, including refusing to pay claims without conducting a reasonable investigation, failing to comply with claim-notification requirements, improperly using claim information to evaluate the health status of applicants and failing to give customers credit for prior insurance coverage.

healthagent · 03-07-2007, 12:28 PM

If that's the result of a market conduct then then $60,000 in fines is par for the course.

CHUMPS FROM OXFORD · 03-07-2007, 01:11 PM

I realize that Assurant is well-repected by mnay (most?) on this Board...but in Ohio, their rates are high and their State complaint ratio is VERY high compared to most carriers.

healthagent · 03-07-2007, 01:17 PM

Not sure where you're getting your info - actually in Ohio Time has the lowest complaint ratio at 1.34 - http://naic.org - I think you have a bad source.

Time Ins Co
NAIC#: 69477 Home Office: Wisconsin
Business Type: Life/Accident/Health

Other Reports: Financial Information Licensing Complaints

Company Search Help

TIME INS CO
COMPLAINT RATIO REPORT

Below is the Complaint Ratio Report for Time Ins Co. Please refer to the Help for a description of how this report is created. In addition, you can click on each parameter to see a description of how the parameter is calculated for use in the Complaint Ratio Report. Please note that "Total Complaints" include only those complaints in which the final resolution by the respective state upheld the consumer's complaint position. Please refer to the Help for a description of these excluded complaints.

Complaint Ratios for Year 2006 Score

National Median Complaint Ratio 1.00

Time Ins Co Complaint Ratio 1.34

7 total complaints in the entire state.

CHUMPS FROM OXFORD · 03-07-2007, 01:30 PM

Hi John

I used the most recent complaint ratio provided by the Ohio State Insurance Dept.

Time has some of the worst numbers (THE worst in 2004) in Ohio. They haven't posted 2006 yet.

http://www.ins.state.oh.us/ConsumSer...Complaints.pdf

I will check out the site you provided though.

somarco · 03-07-2007, 01:34 PM

From NAIC for Georgia

World 1.47
Time 1.34
Golden Rule 1.30
KP 0.30
BCBS 0.21
Aetna .014
Humana 0.13

healthagent · 03-07-2007, 01:59 PM

Don't see an issue - national averages are all low, 2004 was 50 total complaints in OH, almost cut in half in '05 to 25.

You're gonna see higher national ratios by companies who really market their products to agents like GR, Humana, World, Time, etc...

CHUMPS FROM OXFORD · 03-07-2007, 02:09 PM

I don't think it's a huge issue either.

In fairness, for example...The percentage of complaints is indeed quite high when compared to UHC and BC.

Admittedly, if their rates were competitive, I would use them. And maybe they will some day, although the DSM in this area says Assurant doesn't want to compete in Ohio.

Here's an example of monthly rates:

M 45

F 45

3 kids in Franklin County (Columbus)

$344 Aetna PPO 2500

$417 Golden Rule Copay Select $2500 Ded.

$497 Blue Cross Plan 2 $2500 Ded.

$525 Time Max Plan $2500 Ded.

healthagent · 03-07-2007, 02:18 PM

In MD Aetna PPO 30 - which is the $2,500 deductible - for that same family would be $693. I don't like copay plans so I'd recommend the HSA which for Aetna would be $675. I'll sell 'em the Time HSA for $464. In Ohio with a 43085 zip (Columbus) that same HSA would be $330. Fantastic rates in OH.

Ps: Note that two years ago Aetna in MD was also in the low $300's for that family. They have since more than doubled their rates and most every client is off the books. So what's the point of lowballing rates?

CHUMPS FROM OXFORD · 03-07-2007, 02:40 PM

I assume you mean 43085...which is just outside of Columbus. Try 43212 which is Columbus. Rates are even lower!!!

That's the bad thing about Ohio. Low rates and lower commission! Assurant, however, has always been high. In my 26 years here at the company, they always have charged a higher rate than most. Good company, though.

Re lowballing...I know better to do that based on the large bloc of assets I manage.

A "low cost" mutual fund will often return less than another fund that spend a few $$$ for a decent fund manager.

healthagent · 03-07-2007, 02:57 PM

Well if you don't think $344 with Aetna is a lowball then come talk to me in a few years. I bit down on the carrot with Aetna in '04 and now I look like a jackass to my clients. I like selling my clients policies - not renting them.

CHUMPS FROM OXFORD · 03-07-2007, 03:05 PM

Quote:

Originally Posted by john_petrowski

Well if you don't think $344 with Aetna is a lowball then come talk to me in a few years. I bit down on the carrot with Aetna in '04 and now I look like a jackass to my clients. I like selling my clients policies - not renting them.

Agreed. Fortunately, my retention ratio is one of the highest of active agents in this area. Certainly, some of that is due to most agents not staying in the business as long as I.

Aetna's policy has less coverage than most others, which is why they're not our #1 choice...even at those rates.

Aetna, of course, has the goofy 5-year rate band, that nobody else has in Ohio (exc. Nwide). When a 44 year-old has a renewal...they get hammered twice!

healthagent · 03-07-2007, 03:18 PM

Exactly. It didn't take me too long to see that clients simply want to say with the coverage you sold them. That's one of the reasons I'm pro-Assurant because the 10% healthy discount is nice, plus the renewal options other companies don't offer. I had a block of GR business but same crap - hammered at renewals with no escape route. So for me it's not about who's the cheapest. It's about who I can sell that clients can stick with for years and years.

How long you been selling health? You sound like you really know your stuff inside and out. Pretty rare.

CHUMPS FROM OXFORD · 03-07-2007, 03:22 PM

For about 26 years...In the old days...MetLife and Pru offered individual plans. Great coverage and average rates. But both got out in the 80s.

I concentrated a bit more on the health side in the late 90s.

healthagent · 03-07-2007, 03:28 PM

Lord - a real health insurance pro! I've only been at it since '03 so I bow to your wisdom.

CHUMPS FROM OXFORD · 03-07-2007, 03:33 PM

No...I beg to differ. Your posts are usually the first ones I read on this Forum and you have taken the time to return all of my emails with great information.

Your info has been priceless.

healthagent · 03-07-2007, 03:43 PM

A lot of people helped me and asked nothing in return. I'm always happy to return to favor.