STM and GAP Plans Discussion.

[goillini52]

Right.. I was happily using GAC for Accident-Injury plans, until they did something really STUPID on 12/1/2016. General Agent Center started requiring that Injury plan applicants begin setting up accounts, complete with username/password/"secret" question, before the Injury plan application could be started. WTF!?

I switched back to selling the Wholesale Benefit Association (WBA) Injury plans that I sold from 2006 thru 2013.

But at your urging, I revisited the e-mail from GAC and paid closer attention to the Peterson-Lloyd's STM. I'll put my disgust with GAC on the back-burner...call, and see what they can send me regarding that STM's Claim Payments, Policy Document, etc.. That plan is so inexpensive that it's quality is a concern. Have you had any Peterson/Lloyds claims yet, GoIllini52?

-Allen

No, I don't sell STM's Allen...I only work the senior market, and I've never sold any of GAC's products. I've been on their e-mail list for years and when I saw that new product I thought it looked better than what's out there, so knowing that you sell them I thought I'd mention it.

That is ridiculous about the passwords.

 

[junkman]

In case anyone is on Farm Bureau plan including ACA and has to shuffle premium payment,

FB only takes premium via bank draft and drafts close to the 1st of the month.
I have people awaiting an underwriting decision for a 2/1 effective date. They obviously don't want to pay the Feb ACA premium if the other contract is approved.

FB can't tell the status of an application and the person I spoke to "thought" a stop payment would be the same as a cancellation. She also couldn't confirm that there would be a premium refund on the in-force policy or a retro 2/1 effective date. This was a clean app sent up on 01/02/17 and isn't even sending smoke signals regarding underwriting. Upwards of $1400 on the table makes the shuffle pay.

The only solution is to close the bank account in which case, you'll receive a bill, have 30 days to pay via money order or cashier's check then reinstate the draft for whatever policy you keep.

 

[Yagents]

Short term medical insurance - what to know before you buy - CBS News

 

[junkman]

Short term medical insurance - what to know before you buy - CBS News

Agreed. Lots of holes. Hopefully better than nothing and significantly lower premium which reflects lower claims payment. Bring back husband-wife groups and 5 yr look back on underwriting questions. Most age 50 and over can't pass individual underwriting.

 

[AllenChicago]

Hey Allen, I believe I read that you use GAC, so you probably got the e-mail that I just got. I don't sell STM, but this looks interesting. Covers prescriptions...underwritten by Lloyds of London.

https://onedrive.live.com/?authkey=!AHiNDgHw-19i80M&cid=036F4142FD5DB74C&id=36F4142FD5DB74C!148&parId=root&o=OneUp

I wrote several Petersen-LLoyds STM's during 2018 Open Enrollment, because their 3 month plans can be chained together to deliver 12 months of seamless coverage.

Right now, when you begin an online STM enrollment at Petersen International Underwriters | Custom Insurance Plans , the agent/applicant must check a box to affirm that this statement it TRUE.

"I, the proposed insured or the insurance producer, have made an effort to procure temporary medical coverage from authorized insurers, but such effort has been unsuccessful in obtaining coverage or benefits which are satisfactory to the proposed insured's insurance needs."


Today, I received a letter from Petersen stating that on February 1, 2018, that wording will change to:

"I, the proposed insured, attest that ACA coverage is not available at this time and that there has been an effort to procure short term medical from the admitted insurance market, but I have been declined."

I always thought that having to affirm the current statement before being able to complete the application was unusual, to say the least. But as of February 1st, that statement becomes even more restrictive, and omits the agent all-together.

Could the reason for the current and upcoming statement be because Lloyds of London doesn't want to be the company of choice, for initial applicants? Do you think this is just some formality, or will claims be denied, if it can't be proven that the insured applied elsewhere before applying at Peterson/Lloyds?

For a company to say that it only wants people who have been turned down by other STM's, means that they want the sickest and fattest of the population. It's weird, and now I'll be hesitant to check that box after February 1st.

-Allen

 

[thomasm]

Yeah, I think I'll pass on that STM plan!

 

[thomasm]

I'm new to these STM plans. Has anybody put together a carrier underwriting cheat sheet that they'd like to share?

 

[yorkriver1]

I wrote several Petersen-LLoyds STM's during 2018 Open Enrollment, because their 3 month plans can be chained together to deliver 12 months of seamless coverage.

Right now, when you begin an online STM enrollment at Petersen International Underwriters | Custom Insurance Plans , the agent/applicant must check a box to affirm that this statement it TRUE.

"I, the proposed insured or the insurance producer, have made an effort to procure temporary medical coverage from authorized insurers, but such effort has been unsuccessful in obtaining coverage or benefits which are satisfactory to the proposed insured's insurance needs."


Today, I received a letter from Petersen stating that on February 1, 2018, that wording will change to:

"I, the proposed insured, attest that ACA coverage is not available at this time and that there has been an effort to procure short term medical from the admitted insurance market, but I have been declined."

I always thought that having to affirm the current statement before being able to complete the application was unusual, to say the least. But as of February 1st, that statement becomes even more restrictive, and omits the agent all-together.

Could the reason for the current and upcoming statement be because Lloyds of London doesn't want to be the company of choice, for initial applicants? Do you think this is just some formality, or will claims be denied, if it can't be proven that the insured applied elsewhere before applying at Peterson/Lloyds?

For a company to say that it only wants people who have been turned down by other STM's, means that they want the sickest and fattest of the population. It's weird, and now I'll be hesitant to check that box after February 1st.

-Allen

I was explaining this to my one month new Petersen client today about needing to be rejected by an admitted STM carrier on later renewals in 2018. We had set up one month, so the next time it could be 3 months and chain on until end of December. They went with another carrier, not sure who, which is fine with me, as they are older, and were not detail oriented, so I had been having that uneasy feeling when clients come back later "you didn't tell me". It's hard to argue with not wanting to pay almost $2200/month for $6,000 deductible ACA coverage. Selling plans with essentially no pre-existing condition coverage is going to take some getting used to. Been a while since it was reality all day.

 

[yankee466]

So.... I get an email from Peterson today that basically says cease and desist new stm sales after 2/28 in all states. Ignore previous wording email. What gives? Was hoping for an 11month announcement, not an out of biz note. Renewal’s ok though.

Maybe it is in prep for new product up to 360 days?

 

[SamIam]

I was told by GAC the good news you don't have to be rejected but the bad news they will no longer be accepting new clients after the 28th. This sucks I loved this product.