Maryland Law May Prohibit John Hancock Increase

[somarco]

They don't need new people to buy policies in order to pay claims.
They don't need new people to buy policies to make a profit.

How many times did you fail Insurance 101 before you got a license?

 

[Mr_Ed]

You guys need to stick to medical insurance.
You don't understand LTCi.

 

[GreenSky]

You guys need to stick to medical insurance.
You don't understand LTCi.

Well then, please explain how premiums are determined.

Rick

 

[Mr_Ed]

Well then, please explain how premiums are determined.

Rick

investment return
lapse ratio
morbidity
utilization
overhead
profit

 

[GreenSky]

investment return
lapse ratio
morbidity
utilization
overhead
profit

What happens to premiums when lapse ratios drop and utilization increases? I won't even ask about investment returns.

Rick

 

[Mr_Ed]

What happens to premiums when lapse ratios drop and utilization increases? I won't even ask about investment returns.

Rick

the same thing that happens to medical insurance premiums... the only difference is that with medical insurance it happens every year.

 

[GreenSky]

the same thing that happens to medical insurance.... just not every year.

Thank you for clarifying. So LTC is a ponzi scheme but medical insurance is not.

You should be teaching insurance rather than selling it.

Rick

 

[Mr_Ed]

Thank you for clarifying. So LTC is a ponzi scheme but medical insurance is not.

You should be teaching insurance rather than selling it.

Rick

neither is a ponzi scheme.

the only reason I stated before that LTCi was NOT a ponzi scheme was because someone implied that new policy premiums were needed to pay claims. that's absurd. that would be a ponzi scheme.

all I asked before is if anyone really believed that the LTC insurers were losing money on their blocks? (obviously most of the participants in this forum think the LTC insurers are losing money on their LTCi blocks--which means the P.R. people are actually earning their salaries.)

they're not losing money. The claims data is made public every year. a couple of the smaller companies lost money, but the rest are making a profit.

 

[somarco]

someone implied that new policy premiums were needed to pay claims. that's absurd. that would be a ponzi scheme.

Dull, please explain "death spiral" for the class.

All I asked before is if anyone really believed that the LTC insurers were losing money on their blocks? (obviously most of the participants in this forum think the LTC insurers are losing money on their LTCi blocks--which means the P.R. people are actually earning their salaries.)

They're not losing money. The claims data is made public every year. a couple of the smaller companies lost money, but the rest are making a profit.

For your next trick, explain IBNR and lag reports.

 

[Crabcake Johnny]

"Ooooh, ooooh, oooohh, pick me Mr. Kotter!"

When less new healthy business comes in the book ages quickly. As the book ages more claims are filed and people filing claims don't lapse.

So...the carrier has to jack up premiums which leads to less new healthy people, etc.....close?