- 11,280
Definetly. How can I drive buy all those small businesses in between apointments knowing that i am giving up a $7000 commission?
Group Health Forum
- Thread starter johnrocks
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I tried my hand at it a few months ago with a man that I know who owns a Toyota dealership he gets his group through Louisiana Dealer's Association. He has about 70 full time employees and I was thinking the same thing as you are. Anyway after all the time spent on that group I could have seen another 50 seniors. I ended up getting "spanked" by the association's premium and decided to stay in my comfort zone of senior sales. Now a friend of mine just became the general manager of a rather large dealership in this area and I am thinking of giving it another go.
- 11,280
I think I will probaly try to stick to the under 50 employee's group.
You can replace a group at any time, but it becomes more difficult the further away from the last anniversary. Group rates trend monthly, anywhere from 1% - 1.5%. Six months into the renewal, all other things being equal, your rates are 6 - 9% higher than their last renewal.
Not saying you can't replace a case mid year. I have done it before, but much easier at renewal.
Not saying you can't replace a case mid year. I have done it before, but much easier at renewal.
Plans are written on a calendar year deductible and group allows credit towards the deductible with the new carrier.
If you have a $1000 deductible plan (common in group unless they have an HSA or HRA) you will have some folks who have hit their deductible already while others have satisfied $500 or so. It doesn't matter if the plan renews in January or September. The new carrier gives carry over credit so no one loses.
And no, I am not trying to sound smart. Section 125 allows employees to pre-tax their premiums (among other things).
Look it up.
If you have a $1000 deductible plan (common in group unless they have an HSA or HRA) you will have some folks who have hit their deductible already while others have satisfied $500 or so. It doesn't matter if the plan renews in January or September. The new carrier gives carry over credit so no one loses.
And no, I am not trying to sound smart. Section 125 allows employees to pre-tax their premiums (among other things).
Look it up.
Most carriers will write almost any industry. Some will steer clear of hospitals, deep mining, overseas contractors, oil riggers, etc but most can be written subject to the proper load.
A lot depends on the size of the group. Large groups (500+ lives) are universally easier to insure but take a lot of expertise to land.
Biggest issue you will have, particularly with smaller groups is employer contribution & participation.
The company with the lowest rate is what your client will buy. There is no predicting group rates. BX may be lowest on car dealer A and deal B right next to them could be UHC.
A lot depends on the size of the group. Large groups (500+ lives) are universally easier to insure but take a lot of expertise to land.
Biggest issue you will have, particularly with smaller groups is employer contribution & participation.
The company with the lowest rate is what your client will buy. There is no predicting group rates. BX may be lowest on car dealer A and deal B right next to them could be UHC.
Lots of ways. Door to door, internet, telemarketing, B2B seminars. All work.
The larger the group the more competition. Small groups (under 10 lives) are usually the easiest, especially if they have a plan now. Not so if they are virgin.
Most agents are too lazy & too interested in the quick buck to pursue group plans. If you work it hard for a year, along with what you are doing now, you will eventually learn enough to improve your odds. This is not something you can learn overnight.
The larger the group the more competition. Small groups (under 10 lives) are usually the easiest, especially if they have a plan now. Not so if they are virgin.
Most agents are too lazy & too interested in the quick buck to pursue group plans. If you work it hard for a year, along with what you are doing now, you will eventually learn enough to improve your odds. This is not something you can learn overnight.
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Because of the risk the carrier has to assume.
Unlike individually underwritten coverage, a group carrier must assume all risks (except for those that do not have creditable coverage). Take a 3 life group and the owner had a heart attack last year. There are no individual carriers that will take him but a group carrier will.
Guess what kind of load will go on that group?
Unlike individually underwritten coverage, a group carrier must assume all risks (except for those that do not have creditable coverage). Take a 3 life group and the owner had a heart attack last year. There are no individual carriers that will take him but a group carrier will.
Guess what kind of load will go on that group?
G
Guest
Guest
10% in California, TTBOMK. There is a state law AB-something (I forget the number) that makes all group under 50 lives GI and I believe that they can only be rated up 10% from standard.
Correct me if I'm wrong.
Al
- 11,280
Ok, do you guys recommend any places I should start to get more training and products?
