Insurance Agent Forum

[policy doctor]

Uh-oh.....something beginning to stink. Be on the alert. You Florida agents....are you aware of this?


http://www.sun-sentinel.com/business...,1710042.story

[2112Greg]

This is only going to get worse, IMO. I work with home health agencies in Texas on all these issues and it's bad...really, really bad. The good news is the solution is pretty easy, but these plans are a bad idea in the vast majority of cases and I don't understand how agents, well, I better not say for fear of stepping on toes here.

These things have stink all over them. Get ready for class-action suits galore. It's only going to get worse, as I see it.

[honestagent]

What I am most curious about is this: how can they come after us on an individual basis - I'm sure they can pursue legal action to agents too and not just the company. Further, makes one wonder for captive agents if they're representing the company, again, I'd assume they can individually and collectively sue each agent and company, do I stand corrected?

[2112Greg]

While I think they 'can' go after the agent, I don't think that would happen. Insurance companies have the deep pockets and the ones at the greatest risk are the ones whose agents have misrepresented the plans. That's where the bigger issues are, IMO.

I mean, these things were/are being sold by people who didn't even have licenses! Those companies are the ones who are going to get called on the carpet...and if any individual agent gets clipped, it'll be captive ones. But even then, I don't think whatever suits arise from this will include individual agents.

[allhealthandlife]

Unlike before where customers thought they were cheated because they wrote a check AND were lied too, the new fangled "Free Medicare Advantage Supplement Any Doctor Any Drugs Insurance Policy" only requires a dishonest agent to be a good liar and a fast talker.No money is changed hands and the prospect has no idea that their Medicare has just been hijacked.

One easy way to help the Medicare beneficiaries understand that they are handing over something valuable when they sign the Medicare Advantage application is to issue these people a printed official looking " Medicare Funding Transfer Voucher" to be used in AEP and OEP. On this voucher it should disclose that the insurance company is to receive $ 800 per month to provide for their Medicare benefits and that the insurance agent is compensated for this tranaction.

Because most MA plans have a zero premium i think some prospects felt guilty if they didn't sign up because "the nice young man "that came to their house and spent time with them should get credit for his efforts.

[tommyk]

Why would it be only the captive agents that could be placed in this situation? Couldn't all agents be subject to some one filing suit against them?

[BKrocko]

If they want to go after the folks with "Deep Pockets", don't you think that the IMO/FMO's would be good targets as well? Not like it would break anyone's heart to see the screws turned down on them.

[midwestbroker]

I do not see how they can go after the agent or the IMO as it was a claims issue.

The agent and the IMO have no say in the claims or networking of the plan, only sales.