American Community - New Business Suspended in Ohio

[ScottHCO]

American Community Mutual (ACM) has just announced that they will no longer be accepting new business in the state of OHIO. For agents selling in OH, this is big news. OH is one of ACM’s best states.

For questions concerning current clients or future business options, please click on the email below for more information.

[email protected]

(see details below)


STATE: Ohio
SUBJECT: New Business Suspended
EFFECTIVE: December 23, 2009

New Business Suspended in Ohio​

The Ohio Department of Insurance and American Community have entered into a consent order in which American Community will suspend new business sales in the state. As a result, we have agreed to discontinue both Group and Individual new business sales effective December 22nd in the state of Ohio. This does not affect new business in other states where American Community continues to market.

Please note the following regarding recently submitted business in Ohio:

· Group business that we have not received a signed confirmation on by Tuesday, December 22nd will not be processed.

· Individual applications that were not submitted and activated by Tuesday, December 22nd will not be processed.

The Group and Individual quoting systems have been modified and you will no longer be able to quote new business in Ohio.

In-force Business
This change does not affect in-force business and we will continue to service and pay claims for all policy/certificate holders.

39201 Seven Mile Road, Livonia, Michigan 48152​

 

[CHUMPS FROM OXFORD]

I mentioned that I don't use them. I was concerned about their ratings. I believe I made these comments 1-2 years ago.

You mean people were still writing with them?

 

[ScottHCO]

No, we were not. However, your point is quite valid.

This was simply a public service announcement and an offer to assist agents who DO write them or have written them in the past. We don't judge them. We just want to help them...and their clients.

Along the same line, many agents who wrote Unicare and Imerica also needed options when their carrier of choice went away. The reasons why those agents wrote for those carriers weren’t all that relevant once the carrier stopped doing business. Assisting the agents by providing them with solid options to take back to their clients was the main focus.

That's what this post was intended to do...provide options to agents who wrote ACM in Ohio.

:o)

 

[somarco]

OH is one of ACM’s best states.

That is counter-intuitive.

If it is one of their best states there would be no reason to withdraw. Perhaps you should define best.

 

[HealthGuy]

American Community is pimped and will continue to be pimped until the wheels fall completely off by some in this industry for two reasons: MASSIVE OVERRIDES and LARGE COMMISSIONS. Other than that there is no reason to sell this carrier. None.

 

[ScottHCO]

Don't shoot the messenger...

Ohio has been a top state in sales for ACM for many years according to my sources. That's what makes this recent development most disturbing for agents and clients. It may be a sign of the "first wheel" coming off the bus.

They pulled out of CO in the late 90's and never came back...

 

[somarco]

Top state for sales does not equate to a "best" state. They could be on top because their rates are so far below the market they are giving it away. Better (from a carrier perspective) to be in the top 20%- 30% or so. Always in the hunt, sometimes with a very good rate, others with a decent rate but not embarrassing.

 

[CHUMPS FROM OXFORD]

Maybe just chance, but most experienced Ohio brokers I have spoken to rarely if ever submitted apps for them. It was the out-of-state brokers with contracts with GAs that seemed to be submitting the business.

 

[ScottHCO]

Correct. Most OH agents sell Anthem and Medical Mutual...

 

[IndividualHealthGuy]

This is just a downward trend for ACM. They announced last month they were in effect pulling out of AZ, AR, IA, MO, OK, SC and TN. It appears to me that instead of bowing out gracefully (as Unicare has done in a few states) they are going down fighting. It may get messy with them.

I agree there were only two reasons to sell them. Commissions and overrides.