Short Term Medical

joshril · 10-08-2008, 05:34 PM

I don't write very much STM. I've written a few Assurant and Unicare plans, but it does not happen very often.

Anyway, I have been running into several prospects with substantial pre-existing medical conditions that have told me they went with a STM plan from State Farm (Assurant)...

I know for a fact, many of these conditions would not fly... (I had a client that went through State Farm and she had the beginning stages of COPD...)

These State Farm agents are writing this stuff like it's GI... Correct me if I'm wrong, but won't Assurant underwrite the hell out of these plans when claim time comes?

somarco · 10-08-2008, 06:29 PM

won't Assurant underwrite the hell out of these plans when claim time comes?

Yes, and so will any other carrier.

I wonder if the SF agents have good E&O?

joshril · 10-08-2008, 10:42 PM

Originally Posted by somarco

Yes, and so will any other carrier.

I wonder if the SF agents have good E&O?

I honestly don't think many of them understand the health business (no offense to knowledgeable SF agents on here)... I've run into a ton of situations where STM is being used with unhealthy people... It's really scary.

TXINSURANCE · 10-09-2008, 12:25 AM

Short term covers nothing pre existing by plan design anyhow. The reason the premium is super cheap is the claims payout is very low and after deductible.

I sell United short term the price is great.

Unicare short term (lump sum) does have the best RX I have ever seen.

Josh remember these are not underwritten so they will issue anyone until claims roll in they are all denied or policy is dropped all together. Short term never passes through an underwriting department of any company.

somarco · 10-09-2008, 07:18 AM

STM policies are underwritten based on the answers on the app. They don't check MIB, Intelliscripts or any other source.

All answers "no", the plan is issued.

Underwriting is done at point of claim. Rescissions on these policies are sky high . . . especially with Time since they write more than any other carrier.

GR has one of the better plans here, as long as you do not have HTN. Slightly lower premium than Time and access to their network for repricing.

joshril · 10-09-2008, 01:14 PM

Originally Posted by TXINSURANCE

Short term covers nothing pre existing by plan design anyhow. The reason the premium is super cheap is the claims payout is very low and after deductible.

I sell United short term the price is great.

Unicare short term (lump sum) does have the best RX I have ever seen.

Josh remember these are not underwritten so they will issue anyone until claims roll in they are all denied or policy is dropped all together. Short term never passes through an underwriting department of any company.

Try explaining this to a client... "State Farm can insure me even though I have COPD..."

Ok... good luck with that!

TXINSURANCE · 10-09-2008, 02:55 PM

Try explaining this to a client... "State Farm can insure me even though I have COPD..."

Ok... good luck with that!

No need to explain. Hang up the phone and let them go. You can't insure them. If some agent wants to write them on a plan they don't qualify for - not much you can do about it.

Life goes on...

Dave020 · 10-09-2008, 04:47 PM

But but but but...wait a second...I thought retroactive rescision was because all of the health insurance carriers are greedy slimey evil corporations (most rescisions came on STM plans in CA).