How Does Time/Fortis/Assurant/Time Do It?

moonlightandmargaritas

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5000 Post Club
My client, single lady antiques broker, 48, applies with them and gets issued Core Med plan, July 2006. Initial premium $294/month.

They screw up, and send her a letter about how she qualifies for the "24 month rate guarantee". Problem is, she DOESN'T, and they have to send another letter to that effect. Egg on face.

First anniversary, July 2007. New premium $367 per month. 25% increase.

Received in mail today, new rate effective 4/15/08 - $454 per month, a 24% increase!

Now I know how premiums rise as a block ages and gets further away from underwriting but geez...54% in a year and nine months.

Golden Rule here we come.

Assurant used to be my fave company. In addition to these sick renewals, their NB rates are also about 30-40% higher than competitors. I don't even think Mike Golden can write them anymore!

Is this happening in states other than Florida?
 
Was she 48 when she applied?

Is her birthday in April?

If so, this looks like an age change increase.

Mike who?
 
As if we all needed another reason to not sell them.

My corporate rep got real smart with me last month when I told him their pricing was too high and ancillary commissions were too low, and that I will not sell this limited plan they are pushing.

His response was "then why don't I drop your appointments..."

Ohhh no don't threaten me...
 
It amazes me how a carrier that is so large, and has a long history in the business, can do some incredibly stupid things.

When they price themselves above the market all they get is junk that can't go anywhere else.

Of course they may be relying on agent and consumer stupidity which allows them to continue to sell products like Wrong Start and Save Wrong. Clearly they cannot effectively compete in the one market they supposedly want . . . the One Deductible HSA.

Last year I moved my contract from an IMO where I got no respect to contracting direct thru the local rep. He was very helpful and enlightened me to some contractual features that are almost hidden gems.

He also promised to boost my commission rate with nominal production. I figured even using them as a second tier carrier I could probably hit the production goal in 4 - 5 months.

Didn't even come close.

In 12 months I managed to write about $20,000 . . . mostly on the strength of the multi-year rate guarantee.

I found their underwriting to be challenging at best. Rates were middle of the road to outrageous but I was able to sell the higher rate using the rate guarantee.

Add in the DOI challenges over retroactive claim denials and it makes you wonder who is running the ship.
 
The small group has been a very good product for me for years. Competitive and no service or claims issues.

In indv. not so much.
 
I met with the North TX regional sales Manager with Assurant a while back and I ran quotes on my family with Assurant, Aetna and Unicare before our meeting. I showed him the quotes and then told him to sell me on Assurant. When I showed him the quotes he was in shock. He said he didnt realize they where that far off on premiums. Needless to say he did not have an answer for me on how I was supposed to sell their plans, other than offering the 24 and 36 month guaranties.
 

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