Group Insurance For An Association

[dimpil1]

Hi:

Don't know if this is good place to ask but here I go.

A friend has asked me how does their association offer group health, dental and life to their members and benefit from the premium payments.

Meaning they want to be the organization that has insurance agents that sell to their members. I know one organization that does this already but dont' know how they do it.

Does anyone know how to go about setting this up or White Label an existing company?

Thanks in advance

 

[ABC]

I really don't understand the question

Is it a current association plan?

Does the organization want to be able to provide benefits to an association?

 

[dimpil1]

They want to provide health, dental, life to the group members. They want to hire agents (under another company to avoid any law suites since people love to sue) to sell the products to them thus the association will receive the income via another company. Well the structure isn't important.

However, how does one bring insurance to the group.

 

[leevena]

They want to provide health, dental, life to the group members. They want to hire agents (under another company to avoid any law suites since people love to sue) to sell the products to them thus the association will receive the income via another company. Well the structure isn't important.

However, how does one bring insurance to the group.

Personally, I would not recommend this strategy. To begin with the structure will not insulate the association from lawsuits/liability.

Two ways that I can think of for you. First is to have a few brokers represent the Association and market your product. In the development of the pricing the Association can charge a small amount as a marketing fee. The second is for the Association to develop products in a Captive Insurance company. Similar distribution, but many more advantages to the Association.

Also, you will probably need to make sure the Association and plans are ok'd with the state to do this.

good luck.

 

[DS4]

Good luck trying to find a carrier to underwrite an association.
Any assn.

 

[leevena]

Good luck trying to find a carrier to underwrite an association.
Any assn.

While there are not many willing to do this, there are quite a few Association plans available, i.e., RX, medical, AD&D, dental, and more.

 

[ABC]

So the association wants to act as the agent to collect on any commissions?

This is not realistic. Let me guess this is for an MLM?

I would say go out and buy an agency.
Then look at selling individual plans to the association.
You will still be faced with finding someone competent that will work.

 

[somarco]

This model works very well for AARP. It will be almost impossible to duplicate on a group basis.

Most, if not all of the plans offered to AARP members are individual plans endorsed by AARP and the applicants are subject to underwriting rules of the carrier.