Cigna Termination

[BuckNasty]

Got a letter stating that I would be terminated with Cigna this December for lack of production since I haven't wrritten any biz in PA with them in THREE MONTHS. I did however write about 10 med supps in the past year.

I called and they claimed that every year they look back three months before the state licensing is due and that if I want to keep my appointment, I need to agree to pay the fee.

If I let my appointment lapse, do I lose all my renewal commission?

 

[jdeasy]

Got a letter stating that I would be terminated with Cigna this December for lack of production since I haven't wrritten any biz in PA with them in THREE MONTHS. I did however write about 10 med supps in the past year.

I called and they claimed that every year they look back three months before the state licensing is due and that if I want to keep my appointment, I need to agree to pay the fee.

If I let my appointment lapse, do I lose all my renewal commission?

If you are vested then you will still get paid. Most companies do a yearly minimum that they will continue to pay as long as you are above that.

I didn't pay my appointment fee with Family Life 2 years ago because I didn't write them anymore. They told me they would continue to pay renewals until they were below $500/yr. They are still paying me. I get a deposit from them every Thurs.

read you contract and then check with the company to make sure you both read it the same way.

 

[senior-advisor-indiana]

I think I may have sold 2 supps this year with Cigna and it has been more than 3 months ago and I didn't receive a termination letter. I don't believe there are licensing fees here though.

 

[tesflex]

I get these letters all the time. I do not think your contract has been terminated, just your appointment in that specific state. You can always get re-appointed in the future if you need to sell a plan with them again down the road.

 

[goillini52]

It's been 18 months since I wrote CIGNA. I only wrote a few with them and decided I didn't like dealing with them. After their premium increase, I moved them to another company.

We only renew our license every other year and there aren't any fees here. The only reason I'd use them again is if they were the only company someone could qualify with. Won't bother me if they term me for lack of production(I'l find out in July).

 

[txagent41]

Back when I was contracted with them for Part D, they would send me a certified letter every year saying they were cancelling my contract for not completing my recertification (even though it was completed). Every time, without fail, I'd call my FMO and he'd explain that it was a mistake and it wasn't supposed to go out. He said they accidentally sent it to thousands of agents. If it was only once, I'd understand, but it was every year.

I'd call them. It's probably a mistake. How Cigna is still is business is beyond me.

 

[jbage007]

I got the same nitpicky letters on a state by state basis with Cigna individual (major med). Finally told them to go *** themselves and just cancel the whole damn contract instead of state by state on appointments due for renewal.

Funny thing is, they never cancelled the contract but neither have they written another of those pesky individual state term letters.

 

[jdeasy]

The concern doesn't seem to be over losing Cigna. The concern seems to be if they will keep the renewals if he loses them.

 

[goillini52]

The concern doesn't seem to be over losing Cigna. The concern seems to be if they will keep the renewals if he loses them.

Unless he's termed for cause, it seems to be standard practice the way you described you Family life contract...many seem to be $600 annual renewals.

 

[Mediguru]

Renewal commissions will still be paid when terminated for non-production. Commissions would only stop if terminated for cause. Also, this seems to only be happening in pre-appointment states - at least so far.