UO Plan N 24% Rate Increase 7-1-11

[insurance0707]

just got a memo that in MI the UO plan N is going up 24%. Here's the increases so far in other states....

AR 10%
AZ 24%
IA 20%
MI 24%
OK 20%
SD 24%

These are effective 7-1-11, unless the client is in their 12 month initial rate guarantee.

Here's part of the memo...

When rate adjustments occur during back-to-back months, our policy is to wait three months before applying the
second rate adjustment.​

For example​

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: If an application was signed May 2010 and was effective June 1, 2010​

Then, on​

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June 1, 2011, the October 2010 rate adjustment and attained age rating would be applied. Since the
2011 rate adjustment would occur July 1, 2011, this would constitute back-to-back adjustments; so, effective​

September 1, 2011 (following a three-month period), the July 2011 rate adjustment would be applied

 

[pbbaseball]

ouch... lets get the replacements ready!

 

[G.Gordon]

Cool... 10% in AR. I can leave 100% of those alone.

 

[b61mack]

how about nj and pa

 

[jacobtn]

how about nj and pa

24 and 26%, respectively. not bad...

this is the reason I have gravitated towards annuities and final expense. I'm tired of this crap.

 

[bourbonlegend]

I can't believe anybody would have put a healthy individual onto the silly UofO "N" plan.

Jacob- no kidding buddy. This stuff isn't the renewal builder that it used to be. I had to hire another staff member just to handle all of my "client retention".

 

[Longtimeagent]

What about TN and GA?

 

[padthaiforlunch]

Weren't they offering Plan N as GI last year? Really no surprise that rates would go up in a plan where the folks are too sick to move anywhere else.

 

[insurance0707]

The client will actually be getting 2 rate increases. Back in October 2010, UO raised rates. For those that enrolled 6-1-10 when the plans first became available and are now approaching the end of their 12 rate guarantee. On 6-1-11 they'll get the October rate increase and their age rate increase. Then 3 months later they'll get the new rate increase. So September 1st they'll get a 24% increase which will make them even madder

 

[Russ]

The client will actually be getting 2 rate increases. Back in October 2010, UO raised rates. For those that enrolled 6-1-10 when the plans first became available and are now approaching the end of their 12 rate guarantee. On 6-1-11 they'll get the October rate increase and their age rate increase. Then 3 months later they'll get the new rate increase. So September 1st they'll get a 24% increase which will make them even madder

Two rate increases in 3 months(not good). It would be easier for a client to swallow just having one total increase at a time....combining the 2.

People don't like getting 2 rate increase letters in the mail in three months.