Florida Group Health

[AverageJoe]

Hey guys,


I'm a p&c agent about to take the L&H on march 23rd. I own an agency so I was wondering the difficultly for appointments compared to p&c carriers.

Also, average commissions for group health and life in Florida

Thanks you.

 

[Ann H]

Hi Average Joe -

Your questions were specific to Florida and specific to group insurance. I'm not a FL agent, but most of my book of business is small group with a healthy amount of IFP (individual & family plans) too

Appointments for L&H are easy. You might get termed for low production after 12 months, but production is usually very easy next to what it is in P&C. Until 2014, you get a carrier appointment by having a license and completing the paperwork. Sometimes E&O is also required.

In 2014, carrier appointments may be a lot harder, since you have to certify first if you plan to do any business with the new Obamacare Exchanges.

Getting a group health case in 2013 with Obamacare imploding the market on 1/1/2014 will be hard, unless you plan to be an expert in Obamacare (PPACA) and take away all those groups whose broker knows nothing.

We all wish we knew what the commissions would be for 2014. The insurers must have an 80% medical loss ratio (85% for large group), meaning all of their administration expenses (including commissions) and profit must fit into 15-20% of collected premium.

 

[yellowrabbit]

Hello Average Joe,

Ann is correct on the Medical Loss Ratio constraints at 80% or 85% for larger groups. However most carriers are segregating commissions from this 20% or 15% expense limit. At the same time the commissions are relabeled benefit advisor fees and are a separate line item outside of the 85%/80% MLR. Normally see between 3% to 5% unless some eligibility record services is included it could go up to 10%.

 

[pcbinsurance]

Average Joe has had a full year to get appointments so I would think he's all set by now.

Welcome to the Forum Rabbit and a quick word of advice: By all means, join in and add value to this Forum but please refrain from digging up year old threads that have lied dormant.

Thanks and enjoy the Forum!