Update or Re-apply for a Customer

[ameneses54]

This is sort of a tricky question because it implies being judge and jury. Now that we're getting close to open enrollment, once again I'm going over the fact that the ACA considers all policies terminated by year end and even so policies are renewed automatically if nothing is done. It really is sort of contradictory,but as I understand it, that's the way it goes.
My question is how the status of the client is reflected when you only update financials. Is he or she considered a new client for 2016 or not?
I understand that if a change in plans occurs, than it's from scratch.
My point is that it's quite simple just to cancel and re-apply for the customer and as such be treated as a new application with its financial benefits.
I know I'm gonna get heat from this comments, but I'd appreciate your candid point of view.

 

[Yagents]

Huh? Related to commission?

Catch heat for what and from whom?

 

[ameneses54]

Huh? Related to commission?

Catch heat for what and from whom?

Yes the question has an implication referring to commissions.
Regarding "heat", my past experience has made me think of this media as "forum cops".

 

[Yagents]

Renewal commission at best no matter how you do it

 

[Sherota1]

I don't know how it works in your region it varies among carriers. In the Mid-Atlantic most companies pay 1st years commissions for repeat customers only once. If you reenroll the same person the following year into a different plan with their company it automatically defaults to the renewal commission. There is only one company that is paying the same rate for both renewals and new applications. They lay a flat rate of $200 per member. No charge backs. Even if they cancel. The worst is $15.75 per contract not per member and about $8.00 per contract each year after that. Check with others in the area where you are from or call the carrier if in doubt. Broker services should have an answer.

 

[RayNY]

I concur with Sherota1, carriers in my area have clearly stated that a repeat client, even if terminated/reapplied/moved to a new plan/new effective date is treated as a "renewal" for commission purposes.

You have to move them to a different carrier each year to get the FY bonuses.