Mutual of Omaha Rate Increases

[LewB]

Maybe you don't have a problem with that. Just run and gun with the low rate and let the chips fall where they may.

somarco, thank you for the link. I have read many times on this forum how MOO treat their clients, and it raised many questions in my mind. I was assured by three people in my upline that MOO of had turned over a new leaf and things were going to be different.

I really want to do what's right for my clients. I know I have a lot to learn and with companies changing names if makes it very difficult for new agents to really know what is going on.

It seems to me if all states had the birthday rule it would put a stop to the shell game.

 

[sman]

somarco, thank you for the link. I have read many times on this forum how MOO treat their clients, and it raised many questions in my mind. I was assured by three people in my upline that MOO of had turned over a new leaf and things were going to be different.

I really want to do what's right for my clients. I know I have a lot to learn and with companies changing names if makes it very difficult for new agents to really know what is going on.

It seems to me if all states had the birthday rule it would put a stop to the shell game.

They may very well have turned a new leaf, but there's no way to know until after the fact. They have gotten more strict with their underwriting and are rewarding agents for underwritten business as opposed to OE and GI business. They've kept rates low on Omaha Insurance for a few years now (here in Georgia). It will be interesting to see if they can continue this trend. Maybe they've heard the complaints from agents and are actually trying to do things differently this time around.

 

[somarco]

LewB can't say if the tiger has changed its' stripes or not but it doesn't look that way. They are still closing out blocks after 3 - 4 years and rolling out a new carrier.

Most of us haven't seen the MOO name in a while but now they are bringing it back. And they are playing games with the rates as well.

Here in GA they raised rates on F and G a few months ago but introduced a new HH discount which, in some cases, would offset the G new business rates.

I know agents that routinely quote HH discount even if there is not a qualifying person #2 in the home but the low rate is used to grab the attention. Since most carriers require a 2nd insured, and most carriers that offer HH discount only discount rates 5 - 7% you gotta scratch your head and ask how can MOO give 12% and no 2nd buyer.

Pretty sure they also pay more than most on U65 and GI business plus their base commission on "regular" business is higher than many carriers.

There are just so many dollars to go around and nothing magic about this business. All those rate games and bonus comp adds up to effective margin cuts in the 15% range vs competitors. If they were truly smarter than the other players it would make sense but it doesn't.

Your upline will feed you horse hockey just to keep the overrides flowing. I would not expect them to tell you the truth about any carrier. They probably pimp MOO and Aetna more than any other carrier and that is mostly because of compensation to them.

One FMO that frequents this board is pimping both those carriers heavily when there are other carriers in his quiver that have a more stable rate history and don't play games with the rates. Of course those carriers pay less (to the agent and him).

Everyone has a different business model. I spend a lot of time educating prospects on how to buy a Medigap plan that will last a lifetime and it works well for them and me. Almost no complaints and lot's of referrals.

I think there are about half a dozen states with birthday or anniversary rules. Certainly makes life interesting. But I also understand the rates may be higher there and commissions lower (both make perfect sense).

 

[LewB]

I spend a lot of time educating prospects on how to buy a Medigap plan that will last a lifetime and it works well for them and me. Almost no complaints and lot's of referrals.

That is exactly the way I would like to conduct my business. The problem I am having is how do I educate myself about the various companies?

I called my state department of insurance and asked them if they had an increase history for the companies selling Med Supps in Colorado and was told no such records exist.

So if the state doesn't have the information, and the info on CSG can be misleading, and the FMOs can't be trusted, how does a new agent find out the rate increase history as well as their name changes?

 

[somarco]

Most of that info will be collected over time as you mature in this business. I sold United of Omaha early on (in spite of warnings from seasoned agents). Didn't write a lot but every one I wrote blew up.

The only good thing is they are all on the books because they can't go anywhere else.

Good for me. Not so much for them.

Many of those same agents that warned me about MOO were also willing to share info on the carriers they relied on.

 

[goillini52]

That is exactly the way I would like to conduct my business. The problem I am having is how do I educate myself about the various companies?

I called my state department of insurance and asked them if they had an increase history for the companies selling Med Supps in Colorado and was told no such records exist.

So if the state doesn't have the information, and the info on CSG can be misleading, and the FMOs can't be trusted, how does a new agent find out the rate increase history as well as their name changes?

That's one of the purposes of this Forum...to learn from the mistakes of others. I know that a lot of the agents on here pimp their wares, and over time you'll learn which ones you can trust. You're being warned by several long time agents(you can add me to the list) about the way that MOFO has been operating for a long time. None of us have anything to gain by telling you these things because we're not selling anything.

Another little trick MOFO did back in the early 90's is they issued certificates for a while. I never heard much backlash about it, but I see that after Heartland National raised their rates a couple of years ago, they came back with a low priced certificate. I called and talked to their V.P. and he didn't want to say it, but when I pressed him for a yes or no answer...he admitted that they can cancel those certificates...they are NOT Guaranteed Renewable! No thank you.

 

[vic120]

That's one of the purposes of this Forum...to learn from the mistakes of others. I know that a lot of the agents on here pimp their wares, and over time you'll learn which ones you can trust. You're being warned by several long time agents(you can add me to the list) about the way that MOFO has been operating for a long time. None of us have anything to gain by telling you these things because we're not selling anything.

Another little trick MOFO did back in the early 90's is they issued certificates for a while. I never heard much backlash about it, but I see that after Heartland National raised their rates a couple of years ago, they came back with a low priced certificate. I called and talked to their V.P. and he didn't want to say it, but when I pressed him for a yes or no answer...he admitted that they can cancel those certificates...they are NOT Guaranteed Renewable! No thank you.

This is the first time I heard of this What is a issued certificate and why are they low cost (I am guessing non guaranteed renew) Why & How can the be non guaranteed renewable?

 

[somarco]

You don't get a policy, you get a certificate of coverage issued by an association. The coverage is good as long as the association is viable. Once the association folds your coverage goes away.

Certificates are not backed by a state guaranty fund. As Tom pointed out, they are not guaranteed renewable.

Compare that to policies issued today. They are guaranteed renewable as long as you pay your premium. Even if you have a policy from AFLAC, that is no longer offering Medigap, your coverage is still in force and cannot be cancelled.

Associations can cancel your coverage at any time and raise your rates at will.

 

[goillini52]

This is the first time I heard of this What is a issued certificate and why are they low cost (I am guessing non guaranteed renew) Why & How can the be non guaranteed renewable?

It's a certificate through a Savers Association, it's not a policy. Just like many, they come out cheap for a couple of years. It's not Guaranteed Renewable...they can't single out individuals, they'd have to cancel the whole block...it gives them an escape if it gets too costly. While it probably wouldn't happen...it can.

 

[vic120]

It's a certificate through a Savers Association, it's not a policy. Just like many, they come out cheap for a couple of years. It's not Guaranteed Renewable...they can't single out individuals, they'd have to cancel the whole block...it gives them an escape if it gets too costly. While it probably wouldn't happen...it can.

Wow didn't know that was possible or legal, Is heartland the only one doing this now?

I have them just never felt a reason to sell them glad I have not