How Illegal is It to Have 2 Medsops?

[kennethbroyles]

I met a lady once who is duel eligible ( Medicare + TN Medicaid < $923/Mo. income) and was paying BCBST $165/Mo. for a med-sup. I thought she should be able to get her premiums back but she didn't want to " lose her insurance", and would not follow up with me to cancel.
Has anyone had experience with a case like that?

I remember getting people refunds from " cancer plans" who were on Medicaid back yrs. ago.

 

[russelltw]

I seem to have the exact opposite situation. People cancelling there current plans before I get a new policy back to them.

I am not sure what more I can tell a client. "Do NOT cancel this plan until I bring back an new one and place it in your hands." I would think that was enough, but twice in the last 6 months, I have had the client call up and say they had already cancelled the old plan. I am guessing they think they are in good health (it's amazing how we convince ourselves we are in good health; feel okay with 4 meds = good health) and underwriting will not be a problem. Both situations worked out, but I guess I need to have them sign a form explaining what NOT to do.
R

 

[bill3173]

I sure hope the agent has some kind of documentation that instructions were given to the client to cancel the old policy. The DOI will want proof.

A replacement form - If an agent handles a replacement correctly, there's nothing for anyone else to do but sit and spin. That's your "proof", provided you're not dumb enough to sign it yourself, or scan copy the signature.
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I seem to have the exact opposite situation. People cancelling there current plans before I get a new policy back to them.

I am not sure what more I can tell a client. "Do NOT cancel this plan until I bring back an new one and place it in your hands." I would think that was enough, but twice in the last 6 months, I have had the client call up and say they had already cancelled the old plan. I am guessing they think they are in good health (it's amazing how we convince ourselves we are in good health; feel okay with 4 meds = good health) and underwriting will not be a problem. Both situations worked out, but I guess I need to have them sign a form explaining what NOT to do.
R

I had an under 65 client pull that s-word on me recently. She cancelled her current coverage after we submitted an app to the new carrier. I found this out, after I called to let her know that she was declined. She told me that I told her to cancel her current coverage.

I told her she was out of her mind, I've never told anyone to cancel a policy until they've received confirmation from me, or the carrier. She backed off, and fortunately she was within her 30 day grace period and got back on her old plan.

 

[Frank Stastny]

A replacement form - If an agent handles a replacement correctly, there's nothing for anyone else to do but sit and spin. That's your "proof", provided you're not dumb enough to sign it yourself, or scan copy the signature.

Why would an agent, any agent, even think of doing that? The agent is getting signatures on everything else at the time the application if being filled out. That would be beyond the dumbest thing an agent could ever do.

Any agent that is that dumb should have their license revoked permanently.

 

[bill3173]

Why would an agent, any agent, even think of doing that? The agent is getting signatures on everything else at the time the application if being filled out. That would be beyond the dumbest thing an agent could ever do.

Any agent that is that dumb should have their license revoked permanently.

It happens, and worse. I've had clients beg me to sign forms for them, but I refused. Not because I'm wonderful, but because of the consequences.

I have a physician client that has become a personal friend, and it almost wrecked our relationhip when he wanted me to submit an app for him without him even looking at it. I told him that I could fill it out, based on a log file that weighed about 5 pounds, but he would have to review it and do all of the signing. He reluctantly agreed, after about 6 weeks. He felt that he was a busy Doctor, saving lives, and couldn't understand why a half soused insurance agent wouldn't just submit it.

 

[Frank Stastny]

It happens, and worse. I've had clients beg me to sign forms for them, but I refused. Not because I'm wonderful, but because of the consequences.

I have a physician client that has become a personal friend, and it almost wrecked our relationship when he wanted me to submit an app for him without him even looking at it. I told him that I could fill it out, based on a log file that weighed about 5 pounds, but he would have to review it and do all of the signing. He reluctantly agreed, after about 6 weeks. He felt that he was a busy Doctor, saving lives, and couldn't understand why a half soused insurance agent wouldn't just submit it.

You should have told him that only "full soused" agents do that.

 

[Biggin]

Just from personal experience, I have seen this before and every time it was a Banker's Life policy that was the 2nd in force. Coincidence? Maybe. A terse letter has gotten premium returned by Banker's for my clients in the past. Not always, but it's been done.

 

[newdirection]

Why not tell the client to get all his Medicare EOMB's from the last two years and file them with the Plan J company. In case they don't refund.

 

[walleyeb1]

I have a little letter can't remember where I got it, to cancel the old policy and talk with the client about the timing of cancelling their old policy after the new policy is issued.

I have them sign it when I write the new application. I let them know I won't send it until the new policy is issued. When I see the new policy is issued I call the client back and tell them congratulations your policy was approved and issued. I also let them know I am now going to send in the cancellation notice to the old carrier that had the higher premium. Thank them again for doing business with me and not to hesitate to call if they have any questions.

Then I send a little thank you/congratulations letter, throw in 5 of my cards and ask if they would mind giving then to any of their friends that maybe paying too much for their supplement plan.

Date:

Current Medicare Supplement Insurance Company
Insurance Company Name: ____________________________
Insurance Company Address: ____________________________
____________________________


Re Name: ____________________________
Policy Number: ____________________________


To whom it may concern,


I wish to cancel the above mentioned policy effective _________________. I have replaced this policy with another insurance carrier. Please discontinue the monthly bank draft (if applicable) as of this date.


Sincerely,


___________________________
Policy Holder Signature


I always fax it in and keep a copy of the transmittal receipt.

 

[Midlevel]

Dang Walleye, I thought you were me writing that last post. I do the same thing except I also add a line under their signature that I have them print their name also. Some people's signatures are not good so I think a printed name helps the Insurance Company make sure it is actually the client's signature.
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Also, I don't fax but I send it in the mail. Always photocopy 1st and then write on the photocopy the date you mailed it.