How do I begin as a Independent Agent in CA

[Dave020]

Dave,

Hopefully this question makes sense. For cases involving HIPAA, can the client have access to all programs offered by the new carrier, or are there restrictions to plan Z only, etc. Thanks again if you could address.

In California, carriers selling IFP must by law offer at least two plans under HIPAA. At initial enrollment time, client may choose from those offering with no restriction. Currently Blue Cross offers four plans (all PPO) although pricing would drive to only one plan ($1500 PPO), Shield offers 2 PPO plans (1500 and 2000), Health Net offers four plans (2 HMO 2 PPO one of which is HSA compatible) and Kaiser (which we can't sell anyway) offers two HMO plans (the good value is the 50 HMO which is junk as it has no Rx benefits).

So, initially your client can choose from those kinds of offerings. It is not the full portfolio, but a couple of plans offered under HIPAA.

Once the client is enrolled, no plan changes are allowed (Except for Kaiser which will allow anyone who is brain-dead to switch from the $25 HMO plan to the $50 with no Rx...how nice of them).

Dave

 

[OneMorePolicy]

In California, carriers selling IFP must by law offer at least two plans under HIPAA. At initial enrollment time, client may choose from those offering with no restriction. Currently Blue Cross offers four plans (all PPO) although pricing would drive to only one plan ($1500 PPO), Shield offers 2 PPO plans (1500 and 2000), Health Net offers four plans (2 HMO 2 PPO one of which is HSA compatible) and Kaiser (which we can't sell anyway) offers two HMO plans (the good value is the 50 HMO which is junk as it has no Rx benefits).

Dave

Thank you again Dave. The only carrier then that offers an HSA plan for HIPAA is HealthNet? (assume that's Healthnet, not the Farm Bureau) Is the BC $1500 PPO proven to be the best seller of the bunch?

Also thanks too for pointing out that for IFP write direct, not through a GA!

 

[Dave020]

Thank you again Dave. The only carrier then that offers an HSA plan for HIPAA is HealthNet? (assume that's Healthnet, not the Farm Bureau) Is the BC $1500 PPO proven to be the best seller of the bunch?

Also thanks too for pointing out that for IFP write direct, not through a GA!

As far as I know only Health Net has HSA in the HIPAA portfolio. They used to have only HSA (2 plans) but just changed it this month to offer the higher deductible HSA ($4000) and one of the Right Plan Clones they created a few years ago. Smart Value or some such.

It is straight Health Net, not Farm Bureau for the HIPAA.

Blue Cross forces sales to the HIPAA Share 1500 by pricing. They offer three other PPO plans ($2500, $5000 and Basic I believe), however all four products cost exactly the same. Since the other three have higher deductibles or less coverage, you would never buy them. Thus the 1500 is really the only choice. And, on a side note, one of the two plans registered under DMHC instead of DOI ;-)

 

[porange]

Has anyone gone with Principal Financial Group?

 

[Franz Kafka]

Thank you for the great tip. I just recently started doing IFPs and have a question. Do you recommend me to join a GA for group business? Is this because carriers would not let me sell group directly? If not why should I work under a GA (for group)?

Welcome to the insurance business.

If you are doing life and health, here are my recommendations......

For Health Insurance contract directly with:
Blue Cross CA 1-800-678-4466
Blue Shield CA 1-800-559-5905
Health Net CA - 1-800-909-3447
Kaiser 1-800-789-4661

On individual & family health, write it direct on your own--most of these carriers will appoint you when you submit your first application. Your local regional sales manager can help you get started with each carrier. I would contact the RSM in your area for each carrier to find out how to get appointed and for help in selling intially. RSM gets paid on your individual sales so they will be glad to help you. Don't use a GA for individual sales since there is no GA override for IFP business.

For group health insurance, contract with a good general agency since group pays an override to GAs in California (no override on individual which is why you don't want to write it through a GA). Good group GA to look at are:



If you do that, you should be rolling in no time.

You can decide whether or not you want to add Aetna and/or UHC/Pacificare for health insurance later. Watch out for UHC/Pacificare, they have a non-vested contract which means at some point you could lose your entire book of business with them.

Good luck!

Dave

 

[Dave020]

Thank you for the great tip. I just recently started doing IFPs and have a question. Do you recommend me to join a GA for group business? Is this because carriers would not let me sell group directly? If not why should I work under a GA (for group)?

In California you can sell group directly or use a GA, your choice. Either way you make the same. GA gets an override from the carrier above your normal commission amount if you use one.

GAs can be helpful if you are still learning group or are showing more than one carrier in your proposal to a group. I have worked with Benefitmall before, and they are pretty good. Others I know to be good are Rogers Benefits, Dickerson and Warner Pacific.

Also, if you are showing Kaiser, you get a better commission from Choice Administrators than if you sell it direct with Kaiser.

 

[Reuben]

I just wanted to pop my head in the door to thank all who have contributed to this thread, Dave020 in particular.

I've recently passed my L/H exam here in California, I'm located in Whittier, and am on the threshold of deciding whether to go with Mass. Mut. or NYL.

I do have to admit to having a yen to strike out on my own, a risky venture at best, given my lack of US industry experience, I've been in the UK for the past 20 years.

One great thing about this fourm is the wealth of knowledge that is on here.

I can truely say that I am getting a rather great idea of how much I don't know.

Anyway, thanks for the feedback Dave and for the advice you and others have given, I've cut and pasted tones of material that I've been reading on assorted threads, all of which will be more than useful to me.

 

[Franz Kafka]

In California you can sell group directly or use a GA, your choice. Either way you make the same. GA gets an override from the carrier above your normal commission amount if you use one.

GAs can be helpful if you are still learning group or are showing more than one carrier in your proposal to a group. I have worked with Benefitmall before, and they are pretty good. Others I know to be good are Rogers Benefits, Dickerson and Warner Pacific.

Also, if you are showing Kaiser, you get a better commission from Choice Administrators than if you sell it direct with Kaiser.

Thanks Dave. It really is a great help for me. Let me recap.

Direct appointment for IFP with

BC (done)
BS
KP (done)
HN

However KP IFP commission sucks (so I will only use them when client specifically asks for KP Individual).

I was thinking about getting appointed with Pacificare/UHC but probably won't after having read some posts.

Broker GA appointment for groups
or
Appointment with KP Choice and/or CA Choice.

Are KP and CA Choice GAs?

 

[Franz Kafka]

I just wanted to pop my head in the door to thank all who have contributed to this thread, Dave020 in particular.

I've recently passed my L/H exam here in California, I'm located in Whittier, and am on the threshold of deciding whether to go with Mass. Mut. or NYL.

I do have to admit to having a yen to strike out on my own, a risky venture at best, given my lack of US industry experience, I've been in the UK for the past 20 years.

One great thing about this fourm is the wealth of knowledge that is on here.

I can truely say that I am getting a rather great idea of how much I don't know.

Anyway, thanks for the feedback Dave and for the advice you and others have given, I've cut and pasted tones of material that I've been reading on assorted threads, all of which will be more than useful to me.

I'm a career agent with Mass and like you my last 2 choices were Mass and NYL. From what I have heard when (not if) you leave Mass you get to take the books with you while you can't with NYL. Also I have heard NYL is not as strong with securities as NYL (if you want to sell securities). This is just what I have heard so don't quote me on it.

 

[Dave020]

Thanks Dave. It really is a great help for me. Let me recap.

Direct appointment for IFP with

BC (done)
BS
KP (done)
HN

However KP IFP commission sucks (so I will only use them when client specifically asks for KP Individual).

I was thinking about getting appointed with Pacificare/UHC but probably won't after having read some posts.

Broker GA appointment for groups
or
Appointment with KP Choice and/or CA Choice.

Are KP and CA Choice GAs?

KP IFP is a referral fee, not really an ongoing commission. I believe it is $100 per head initial enrollment and $50 a head renewals. No servicing allowed, but it is better than the goose egg we used to get. And you will run into those people who just have to have a a Kaiser plan.

UHC/Pacificare has an ugly contract, no vesting of IFP business at all. If you die, retire or whatever that take it all back, unlike the other carriers who have you designate a beneficiary to receive the ongoing commissions. I figure if LISI won't sign it, I won't sign it.

On the group side, you can either do KP direct or through Choice Admin (or another GA I believe they have it now too). I think KP just changed the way they pay commissions to be equal to Choice Admin since likely agents were complaining.

Choice Admin runs the CalChoice program, a pooled plan with multiple carriers available to groups 2+. I have never sold one, most of my groups are spousal. They are owned by Word and Brown.

One more thing, you can add Aetna into your mix as well. They have full agent portal for IFP business.

So for IFP I sell direct:

Anthem Blue Cross
Blue Shield CA
Health Net
Aetna
KP

I think for group use a good GA and then use Choice Admin for the Kaiser only cases or any case that you might want to present CalChoice.