Is Charging an Admission Fee for a Medigap Seminar Non-compliant?

[Hiwaunis]

Although I am only interested in attracting those T65 as I mentioned I will be discussing topics other than Medigaps.

I do not want to feed people who donot qualify for Medicare, who already have signed up for their Medigap plan, other agents or those who don't even know what a Medigap plan is, for example teenagers.

I am trying to deter the "plate lickers." I don't want people showing up, getting much more food than they can eat and leaving.

Based on some of the responses I thinking this so called non-compliance rule doesn't exist.

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I hear you loud and clear. You don't know and you don't care.

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I certainly hope there is a rule against it. I'm not an expert, so I don't know, but it seems wrong to me.

Why would I pay to be a salespersons prospect? Let me pay the car salesman so he can sell me a car. By paying him, I'm a better prospect???? I don't think so. I'm not sure where the logic is in this.

If you think about it, you are serving food to attract people. Then you are charging admission to get rid of the people you might attract. Seems like a strange way to do things to me.

Dan

P.S. I've never done these seminars, so there is probably a lot more to it then the way I read this.

Charging a fee weeds out those who come for the freebies. It also encourages those who are interested to RSVP. It's just a marketing tool.

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You have had some Hmm Interesting posts (I guess you can say)Today.

Starting the weekend early?

So you don't know either?

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It probably is compliant.

It definitely is stupid.

Rick

I'm expecting about 10 to 20 people. I'll let you know how it turns out.

 

[somarco]

expecting about 10 to 20 people

How much did you charge? Did they prepay or pay at the door?

 

[Gulfman]

I certainly hope there is a rule against it. I'm not an expert, so I don't know, but it seems wrong to me.

Why would I pay to be a salespersons prospect? Let me pay the car salesman so he can sell me a car. By paying him, I'm a better prospect???? I don't think so. I'm not sure where the logic is in this.

If you think about it, you are serving food to attract people. Then you are charging admission to get rid of the people you might attract. Seems like a strange way to do things to me.

Dan

P.S. I've never done these seminars, so there is probably a lot more to it then the way I read this.

'Financial Advisors" charge for seminars all the time.. I received a mailing not long ago, wanting me to attend a seminar and the cost was $795.00.. I would think they also offered to sell insurance and investments to those who attended.

I don't see what the problem is. Certainly will be interesting.

1. FREE if RSPD (good idea)
2. NO RSPD (well just pay $5 for a sandwich, hang out with your friend Shirley, make sure i get your name and # and email, so i can send you an invitation to our next seminar, which i may let you eat for free).

So the basic premise of most insurance agents is "They don't have any information that is worth charging up front $ for...!"

(is that what i'm hearing????)


.

 

[somarco]

So much information is free. That is your competition. Doesn't matter if what you offer is better or not, and that is a subjective opinion, your competition is free.

Frankly, if $5 (your figure) is going to break the bank you probably need to find another way of prospecting

 

[rousemark]

I don't see what the problem is. Certainly will be interesting.

1. FREE if RSPD (good idea)
2. NO RSPD (well just pay $5 for a sandwich, hang out with your friend Shirley, make sure i get your name and # and email, so i can send you an invitation to our next seminar, which i may let you eat for free).

So the basic premise of most insurance agents is "They don't have any information that is worth charging up front $ for...!"

(is that what i'm hearing????)


.

Not from me.. .

 

[Gulfman]

So much information is free. That is your competition. Doesn't matter if what you offer is better or not, and that is a subjective opinion, your competition is free.

Frankly, if $5 (your figure) is going to break the bank you probably need to find another way of prospecting

Not me Bob...i charge $20 (up front). PM for more personal info.

OH wait....errr. Sorry...wrong forum (sigh).

 

[yogooglethis]

I am planning on doing a presentation on medicare supplements as well as other topics that are important to those t65.

I want to serve food, also. I will be mailing invitations to about 500 people t65.

In order to narrow my target market and have a better quality of prospects I decided to list the seminar as Free to those who RSVP by a certain date and charge an admission fee to those who just show on the date of the presentation. Of course I will let anyone in if there are seats available.

I am being told that I cannot charge a fee to Medigap prospects because the information is free. If I charge then I will be non-compliant and could possibly end up in jail.

Has anyone ever heard of this rule about not being able to charge an admission fee?

" I am planning on doing a presentation on medicare supplements as well as other topics that are important to those t65. "


if those topics include Part D or part C it would be very non compliant and the seminar would also have to be registered with CMS as a marketing event if you intend on doing any marketing to attendees before ,during or after the
event.In addition you also have to get specific PTC to be able to call these prospects before and after event and the mailer you use has to be compliant and most likely has to be approved by any MA or PDP carrier you are certified to sell and intend on mentioning at seminar.

On the other hand if you want charge admission to seniors to attend a seminar to learn about how part A and B works with medicare supplements that wouldn't be against any CMS or DOI regulations that I am aware of.I wish you well but i don't see how that could possibly be cost effective marketing.

 

[Hiwaunis]

" I am planning on doing a presentation on medicare supplements as well as other topics that are important to those t65. "


if those topics include Part D or part C it would be very non compliant and the seminar would also have to be registered with CMS as a marketing event if you intend on doing any marketing to attendees before ,during or after the
event.In addition you also have to get specific PTC to be able to call these prospects before and after event and the mailer you use has to be compliant and most likely has to be approved by any MA or PDP carrier you are certified to sell and intend on mentioning at seminar.

On the other hand if you want charge admission to seniors to attend a seminar to learn about how part A and B works with medicare supplements that wouldn't be against any CMS or DOI regulations that I am aware of.I wish you well but i don't see how that could possibly be cost effective marketing.

No I want be presenting anything that needs to be submitted to CMS. The agency where I want to have the seminar has a compliant officer. It is the compliant officer who said my invitation charging an admission fee would be non-compliant. The problem was with why he said it was non-compliant. The insurance code that he asked me to read was also incorrect. However, there was another code that seems to make charging something is non-compliant. I'll paste it for those who care.

This was his response to me about this code.
"Yes the section 550.001 does give you a right to charge a fee for an application. Not the cost of you doing business in order to get the application."

CHAPTER 550. PROHIBITED PRACTICES RELATING TO PAYMENTS

Sec. 550.001. SOLICITATION OR COLLECTION OF CERTAIN PAYMENTS. (a) An insurer or an insurer's agent or sponsoring organization may not solicit or collect, in connection with an application for insurance or the issuance of a policy, a payment other than:
(1) a premium;
(2) a tax;
(3) a finance charge;
(4) a policy fee;
(5) an agent fee;
(6) a service fee, including a charge for costs described by Section 4005.003;
(7) an inspection fee; or
(8) membership dues in a sponsoring organization.

I was still not convinced so I started researching other insurance websites. The explanation for section 550.001 is that since premiums have to be registered with the state, and the price of advertising is included in the premium which covers commissions, then charging anything else is similar to an agent increasing the premium.

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Not me Bob...i charge $20 (up front). PM for more personal info.

OH wait....errr. Sorry...wrong forum (sigh).

You are right everyone gives free food. I am concerned about having enough food for the target audience. Of course if I owned the agency where the seminar is held that would be different.

But my biggest competition is during AEP. The agents have made their money and are taking easy now. Some agents are claiming they submit 50 to 100 enrollments.

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I don't see what the problem is. Certainly will be interesting.

1. FREE if RSPD (good idea)
2. NO RSPD (well just pay $5 for a sandwich, hang out with your friend Shirley, make sure i get your name and # and email, so i can send you an invitation to our next seminar, which i may let you eat for free).

So the basic premise of most insurance agents is "They don't have any information that is worth charging up front $ for...!"

(is that what i'm hearing????)
.

LOL, no. I was going to put $25 admission fee on the invitation. The food will be catered. I wouldn't think of turning away a T65 who didn't RSVP and just showed up. The fee is a marketing tool to encourage those T65 to RSVP and discourage those who are NOT senior citizens. Some people just want the food. They bring bags to put the food in and then leave. These are the people I am trying to discourage.

Ok, I guess I should have said something about the quality of my list. These list are full of wrong numbers, disconnected, deceased and a few, not 65 for another 20 years.

None of that matters now. I'll have to think of something else.

 

[rbrewer]

why don't you just pre-qualify them when they RSVP or call them back and do it.

 

[MedicareAgent]

Your out of compliance totally if you mention medicare. Find the rules and read them before you lose your license.
All Medicare information meeting must be reported to Medicare and you are not to serve food or charge admission.