Cigna Will Pay Commissions on GI for CO

[Crabcake Johnny]

Cigna reverses their decision not to pay on GI. This is for CO but I imagine it'll apply to all states:


Commissions on Guaranteed Issue Policies - State of Colorado


Effective immediately CIGNA will pay commissions in the state of Colorado on Individual & Family Plan

policies that cover one or more Guaranteed Issue customers. This statement reflects a change from the
original communication distributed on July 29, 2010.



Please refer to the CIGNA Individual Commission Sheet for the commission schedule in Colorado.

 

[GreenSky]

Same in California. Don't know why they reversed this. Waiting for the shoe to drop.

Rick

 

[Crabcake Johnny]

Why did they reverse it? A good guess would be the broker community's response to their previous announcement.

 

[ksigmtsu]

I called my rep the day of the first announcement to clarify what they meant and told her that I wouldn't be selling any policies with children on them unless the decision was reversed. I'd bet a lot of other brokers did the same thing.

I'd wager most kids are reasonably healthy and are low utilizers in general, and they'd be better off overall leaving GI kids commissioned.

 

[stuy119]

The fact that commissions are "pass-through charges" likely didn't hurt their decision-making process.

Now I wonder if BCBSIL will do the same and change their position on child-only plans.

 

[jbage007]

Same in California. Don't know why they reversed this. Waiting for the shoe to drop.

Rick

I told you guys this was blatantly illegal and you all laughed at me (except for 2 unnamed posters).

Do you seriously think they are doing this out of the goodness of their hearts? Or because a few brokers complained?

 

[GreenSky]

I told you guys this was blatantly illegal and you all laughed at me (except for 2 unnamed posters).

Do you seriously think they are doing this out of the goodness of their hearts? Or because a few brokers complained?

Just for the record, I never laughed at you. I may be sarcastic and mean, but I never laugh.

Rick

 

[Crabcake Johnny]

I told you guys this was blatantly illegal and you all laughed at me (except for 2 unnamed posters).

Do you seriously think they are doing this out of the goodness of their hearts? Or because a few brokers complained?

A member of mine called and also questioned the legality of an agent submitting an application and ultimately not receiving any comp.

I fully agree with your assessment. They didn't change their mind because a few brokers complained. They likely changed their mind because legal told them they couldn't offer zero comp to agents.

I think it's all in or all out. Either agents receive "$$$" in comp for writing a deal or the carrier issues a statement saying they will no longer work through brokers.

 

[GreenSky]

I think it's all in or all out. Either agents receive "$$$" in comp for writing a deal or the carrier issues a statement saying they will no longer work through brokers.

That won't happen for a few years.

Rick

 

[Crabcake Johnny]

Their rather quick reversal of their initial announcement is rather telling. I guess the carriers really can't do just whatever they feel like doing.