How Do MA Renewals Continue Beyond Writing Agent's Death?

[wehotex]

I asked this question some time ago and just had an acquaintance agent that died at age 63. I don't know his wife, so can't ask her if she'll continue collecting his renewals. But, I wonder..... Is there any legitimate way for a fellow family member or fellow agent to continue collecting MA renewals after Agent's death?
Does Social Security notify the Dept of Insurance that the person is deceased just like the way that the MA plans are notified of our clients' deaths?

I just looked for his name in the Texas DOI website. His license ends on March 29, 2013. I wonder if his family is going to renew it? I don't see how these companies would really know that he is deceased as long as no face to face meeting is required.

 

[jacobtn]

I asked this question some time ago and just had an acquaintance agent that died at age 63. I don't know his wife, so can't ask her if she'll continue collecting his renewals. But, I wonder..... Is there any legitimate way for a fellow family member or fellow agent to continue collecting MA renewals after Agent's death?
Does Social Security notify the Dept of Insurance that the person is deceased just like the way that the MA plans are notified of our clients' deaths?

I just looked for his name in the Texas DOI website. His license ends on March 29, 2013. I wonder if his family is going to renew it? I don't see how these companies would really know that he is deceased as long as no face to face meeting is required.

since you have to recertify annually to collect renewals, not sure how that would work.

 

[wehotex]

since you have to recertify annually to collect renewals, not sure how that would work.

Presumably, a family mb could complete the Ahip and MA certs for the deceased.
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Presumably, a family mb could complete the Ahip and MA certs for the deceased.

But, there must be an easier way. What about incorporating and having renewals paid to the corporation?

 

[melmadhav]

In order to receive renewals you have to certify. If some one completed the deceased certifications they would be out of compliance by CMS

 

[mikeincolumbuso]

Since I am not incorporated, myy upline told me that if I died their approach would be to buy my book of business from my spouse and they would pay her twice premium or business I had written during the past six months. I hope that helps.

 

[wehotex]

Since I am not incorporated, myy upline told me that if I died their approach would be to buy my book of business from my spouse and they would pay her twice premium or business I had written during the past six months. I hope that helps.

Ok, but that's something arranged with your up line, right? Did they put it in writing? What if a person had illness, could not work and wrote diddly in the last six months?

 

[DS4]

In order to receive renewals you have to certify. If some one completed the deceased certifications they would be out of compliance by CMS

Why does "Weekend At Bernies" come to mind?

 

[G.Gordon]

MA is not a legacy income stream the way CMS rules are written. We are incorporated, the wife is an agent, but not the agent of record. I'd assume if I died, those plan's renewals end.
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Well, I was wrong. Here is a response I just got from a higher up at Coventry on my Advantra line.

This is how we can ensure that your business will stay intact if anything does occur. You need to open an LLC and move to an LOA under the Agency as the principle. Any commissions written prior to you being an LOA would still pay at the AG4 level to you unless a remit to payee was submitted to pay your renewals to the agency from your personal account, which is what you should do. Then if you do pass we would then obtain a Death Certificate, and we would need to obtain the documentation showing who is the new Agency Principle. After we have set up the new agency principle, we would then require them to do a Notice of Service Change to move the membership under the new principle, which is a form that they send to the clients telling them of the agent change.

 

[policy doctor]

Great information....thanks. I was wondering the same thing.

 

[wehotex]

MA is not a legacy income stream the way CMS rules are written. We are incorporated, the wife is an agent, but not the agent of record. I'd assume if I died, those plan's renewals end.
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Well, I was wrong. Here is a response I just got from a higher up at Coventry on my Advantra line.

This is how we can ensure that your business will stay intact if anything does occur. You need to open an LLC and move to an LOA under the Agency as the principle. Any commissions written prior to you being an LOA would still pay at the AG4 level to you unless a remit to payee was submitted to pay your renewals to the agency from your personal account, which is what you should do. Then if you do pass we would then obtain a Death Certificate, and we would need to obtain the documentation showing who is the new Agency Principle. After we have set up the new agency principle, we would then require them to do a Notice of Service Change to move the membership under the new principle, which is a form that they send to the clients telling them of the agent change.

Wow, thanks. What's an "LOA"? Do you think that there are more companies that operate like that? Isn't Coventry Advantra the one that was purchased by Aetna? If Aetna takes over, couldn't they change that policy that you just outlined "at will"?