United of Omaha 4-1-10 Rate Increase

[insurance0707]

I called United of Omaha yesterday and asked when the rate increase would take effect for my clients that have had the coverage for more than 12 months. They told me 4-1-10. Usually when there's a rate increase I hear from at least some of my clients. I also get a statement showing me what their current rates are and what they will be going up to. I got a statmenet but it only had about 5 clients on it. I have alot of clients and they weren't listed. Have any of you gotten notices as to what the rates will be for your current clients. I thought they had to give them at least 30 days notice.

 

[Russ]

I called United of Omaha yesterday and asked when the rate increase would take effect for my clients that have had the coverage for more than 12 months. They told me 4-1-10. Usually when there's a rate increase I hear from at least some of my clients. I also get a statement showing me what their current rates are and what they will be going up to. I got a statmenet but it only had about 5 clients on it. I have alot of clients and they weren't listed. Have any of you gotten notices as to what the rates will be for your current clients. I thought they had to give them at least 30 days notice.

I don't write UoO in any states that I write in, but w/UW and MoO they go up on the anniversary of the policy.

Example...if someone took out a policy effective July 1st, 2008 and UoO had a rate increase April 1st, 2010, it would go up on July 1st, 2010. At least that's the way UW and MoO are and I'm pretty sure UoO is the same way.

 

[insurance0707]

Thanks Russ - that makes sense

 

[Yoda]

Example...if someone took out a policy effective July 1st, 2008 and UoO had a rate increase April 1st, 2010, it would go up on July 1st, 2010. At least that's the way UW and MoO are and I'm pretty sure UoO is the same way.

The client is locked into the rate he took the policy out for the first year only and then the mountain climb begins. The rates go up everytime they have a birthday and once a year when the rates are raised across the board.

 

[GreenSky]

The client is locked into the rate he took the policy out for the first year only and then the mountain climb begins. The rates go up everytime they have a birthday and once a year when the rates are raised across the board.

And how is that different with virtually every company that is age rated?

Rick

 

[G.Gordon]

Okay... Russ is going to think I'm picking on his post. MOO does not have a practice of raising a clients rates "only" on their anniversary. Once that first anniversary passes the client will get a rate increase when even the company gets one approved. Much like other companies. Serling, AnTex, and RNA did one thing that was repectfull. They only raised a client's rates on thier anniversary.

 

[Russ]

Okay... Russ is going to think I'm picking on his post. MOO does not have a practice of raising a clients rates "only" on their anniversary. Once that first anniversary passes the client will get a rate increase when even the company gets one approved. Much like other companies. Serling, AnTex, and RNA did one thing that was repectfull. They only raised a client's rates on thier anniversary.

They do in Florida. I have a case right in front of me. Her policy date is April 1st, 2003 w/MoO. Her rate increased on April 1st , 2010 from $165.66 a month to $175.10 a month.

I have another case where a UW policy went up from $214.58 a month to $239.05 a month. It went up May 1st, 2010. Her effective date is May 1st, 2003.
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The client is locked into the rate he took the policy out for the first year only and then the mountain climb begins. The rates go up everytime they have a birthday and once a year when the rates are raised across the board.

Wrong...it doesn't work that way in Florida. If it's UW or MoO it will go up on the anniversary date of that policy if that policy series has a rate increase. It has nothing to do with their birthday. It's issue age in Florida, not attained age.

 

[justinking]

Though I'm not an agent, in my limited knowledge I would tend to agree with Russ. I do not believe companies will have different dates in different states.

 

[G.Gordon]

I'll wait on other Missouri agents to chime in. That ain't the way MOO products increase here.

 

[insurance0707]

Maybe Moo/UO/UW is changing the way they give rate increases. I have in the past had a client that was past his 1 year anniversary get a rate increase and then 3 months later they got another one. That's why I was suprised when they said there would be a rate increase on 4-1-10 and it only showed about for about 4 or 5 clients, not all of them. Maybe they're changing it to just anniversary only
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I plan on sending out a new app to my turning 65 people that I wrote in March -May letting them know about the modernized plans with the new hospice benefit. Their rate won't change, Plan F and G still have the same premiums but at least they'll be in the new block of business and not get the 24% increase next year.