Continental Life

Oct 11, 2007

  1. insurance0707
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    Has anyone ever tried to move their Continental Life Medicare supplement business to another insurance carrier.

    I had written a group of retiree's Continental Life's Plan F Medicare supplement because they had lost their group health coverage. They were all guaranteed issue plans because they lost their group coverage.

    Now, 4 or 5 years later, Continental Life has had some big rate increases, and there are other companies with lower premiums that I'd like to switch them to. However, I've been told that if I do this, Continental Life will charge me, the agent, the annual premium for each person that I move.

    I don't know how they can do this. I have never heard of another insurance company doing this.

    Any suggestions????
     
  2. retread
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    You bring up an excellent point!!

    You are, in essence, flipping your company. I am also certified by Continental, and this is forbidden under my contract ("Authority and Limitations", 6(H)).

    I had not considered this before, but it looks like Continental has the right, at least in my contract, to do this. Furthermore, it applies to any downline, too, and if they flip a Continental product, you forfeit any overrides already received on their sale!!

    My suggestion would be to look at reducing the plan cost, if at all possible... iow, lower benefits not needed, etc. Otherwise, you gonna owe bigtime, brother!
     
    retread, Oct 11, 2007
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  3. insurance0707
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    I spoke to an agent that he rolled his whole block of business away from Continental Life. Continental came after him. He spent about 2 years in court fighting this, had a congressmen involved, etc. and did beat the case.

    If you're lowing your clients premiums, giving them the same coverage, etc. Continental shouldn't be able to prevent you from helping out your own clients. I'm surprised the insurance bureau allows them to do this to agents.
     
  4. retread
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    WOW! Glad you brought this up. I will look a little more carefully at those contracts. I recently reviewed the ICA contract for Secure Horizons, and they forbid flipping their established customers, too. They don't mind if you bring in business, and they don't see anything wrong with replacing a competitor's client!

    If you think it is a little hypocritical, consider why they want to protect against their own agents flipping their customers. I imagine those agents have access to the customer database. In that case, service them, but don't flip'em! That's not nice!

    And for Independents, just remember, you made money on that contract. You must honor it. If the client's cost is significant, you can always refer them to someone else! If you try to have it both ways, you end up being accused of unethical conduct.
     
    retread, Oct 11, 2007
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  5. Mr. Bill
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    You know, really, this is when you need to be great friends with someone local to you (or even not local!) and simply allow your friend to take over the accounts for the first year, do some sort of commission sharing, with the understanding that you will take back the clients the following year. There really are a number of great people in the business, you just have to stay away from slugs, scumbags, and the MLMer's.
     
    Mr. Bill, Oct 11, 2007
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  6. insurance0707
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    That's good advice, thanks!
     
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