CIGNA MedSupp Experience

[houcoogster]

Sman,

That is very subjective to say that paying 14% more today is the wrong choice. In order to say that you would have to know what is going to happen in the future.

 

[sman]

Sman,

That is very subjective to say that paying 14% more today is the wrong choice. In order to say that you would have to know what is going to happen in the future.

Or you could pay the lower cost now from a carrier who has had small rate increases since modernization. You can handle your business any way you want. And I'll handle mine the way I want. I simply pointed out the difference in premium which another person said was pretty much the same between carriers. Facts are facts. I don't argue with them, I just present them.

 

[biohammer]

What do you do about the replacement clause in the Cigna contract if a client comes to you and wants to change carriers for a better rate? "policy replacement prohibited" ?

 

[bpenn9]

What do you do about the replacement clause in the Cigna contract if a client comes to you and wants to change carriers for a better rate? "policy replacement prohibited" ?

Did you read this entire post or just this page?

 

[biohammer]

Did you read this entire post or just this page?

I read the entire post Thank you for your question instead of providing any helpful input. I am looking at contracting with Cigna and section 14 is not comforting. Am I looking at an old contract? Am I to understand correctly that this clause has been removed? Or is it the general consensus that agents should ignore things like this? I am trying to understand my legal requirements regarding this contract before entering it. Something I think people should do before signing contracts. What are the ramifications for moving someone to a lower priced carrier if they request it? Just trying to learn here ....

 

[agentjhc]

The copy of the contract I recently received still mentions not engaging in a "pattern" of rolling business. Received it in late July. Don't know if that is an old contract, or simply that it is still in the contract. But a lot of folks seem to be selling it and, I guess, not worrying about it.

 

[Daytona_Guy]

The copy of the contract I recently received still mentions not engaging in a "pattern"

Yep, it's in their latest version of the contracting (7/15). However, this is redacted greatly from the former version of the contract, where it had a "until termination of this agreement + 2 years" in there. It appears they have backed off of it in the latest version.

This is the latest version:

Section 14: Policy Replacement Prohibited
Associate and Subagents under its control shall not directly or indirectly engage in a pattern or practice of replacing, lapsing, canceling, or rewriting Company's policyholders.

Without the agreement contained in this Section 14, Company would not enter into this Agreement and would not provide Associate with the printed materials identified in Section 12 of this Agreement and access to the electronic web-portal.

The older version:

Section 14: Policy Replacement Prohibited
Associate agrees that during the term of this Agreement, and for a period of two (2) years following its termination for any reason, Associate shall not directly or indirectly contact, solicit, communicate or meet with any of Company's policyholders, including those policyholder's which Associate or its Subagents wrote with the Company, for the purpose of rewriting, canceling, lapsing or replacing Company policies, and Associate shall not rewrite, cancel, lapse or replace any Company policy. Company's policyholders specifically includes, those policyholders introduced to Company through Associate and its Subagents.

In addition, Associate shall not permit Subagents under its control to engage in a pattern or practice of replacing, lapsing, canceling, or rewriting Company's policyholders. Without the agreement contained in this Section 14, Company would not enter into this Agreement and would not provide Associate with the printed materials identified in Section 12 of this Agreement and access to the electronic web-portal.

Furthermore, Associate shall not directly or indirectly attempt to or persuade an agent or producer of Company to terminate or reduce his or her
relationship with Company.

 

[Newby]

Wouldn't it be smarter, better and easier to NOT sell them a Plan that historically takes larger rate increases in the first place? If we're in this business to create longevity in our renewals, why sell them a plan that we all know is going up faster than any other plan out there? A plan that you have to spend your time replacing every year or two because you can't educate your client to take the smarter, more logical choice that will get you 5-7 years easy.

The only way I can make sense of your post is if you think selling plan G or N over F is some "new" concept. Don't you think pretty much everyone does that? Do you think those customers don't get upset over rate increases? They don't know that there increase may have been less than others. They need agent contact just like anyone else.

 

[biohammer]

Thanks Datona_Guy And JHC for the heads up. I was definitely looking at an older version of the contract and am glad I didn't sign it. They are very competitive in my area so i want to carry them but the new language of "pattern" is more palatable.

 

[Superchief]

The only way I can make sense of your post is if you think selling plan G or N over F is some "new" concept. Don't you think pretty much everyone does that? Do you think those customers don't get upset over rate increases? They don't know that there increase may have been less than others. They need agent contact just like anyone else.

Pretty much everybody in this general area right in here. Anything below the stereo and on this side of the bicentennial glasses. Anything between the ashtrays and the thimble. Anything in this three inches right in here in this area. That includes the Chiclets, but not the erasers.

"Pretty much everybody" definitely DOESN'T do that. Not even close. Last numbers I saw from CSG (and this has been a while), was about 70% of seniors who purchase a med supp plan, purchase Plan F. Definitely not "pretty much everybody". Definitely. Definitely not. Not. Definitely. Definitely not. I'm an excellent driver. Driver.