Imerica Health Insurance in Receivership

We saw this one coming from day one.

Considering all the proven carriers we have in our portfolio, it was very frustrating when some of our agents were drawn away from our agency by artificially low premiums and advanced commissions. Many of them are calling looking for alternatives...glad to have them back.
 
drawn away from our agency by artificially low premiums and advanced commissions. Many of them are calling looking for alternatives.
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As is true with most carriers, I suppose they had pockets where they were competitive, but I never saw it here in Georgia. Sure, they had some low premium plans, but when compared to a comparable "Saver" plan from a name carrier there was virtually no difference . . . other than the high commission.

With all the turmoil in the health insurance business I can't imagine a marginal carrier entering the market now, but if they do those kind of agents will jump on that horse and ride it until it dies.

My business has been built slowly, brick by brick with a sound foundation of A+ carriers and comprehensive health insurance plans. The only thing significantly different about my client portfolio from most is the prevalence of people with HSA's and other high deductible, no copay plans.

Probably 95% of my clients have plans that do not have a copay.

The lower premiums of these plans meant lower commissions but the referrals I get these days is as they say in the credit card commercial . . . priceless.

For the few high claim clients I have, such as the guy with metastatic cancer, they are grateful that their plan is covering 100% of their treatment. I would hate to have a conversation with a client who has a terminal disease and have to tell them their plan doesn't pay for their medication.

Imerica was junk the first time. When they left the market and then returned that alone should have been a red flag for anyone in the business more than 6 months. Some agents who used them the first time were glad they were back.

Of course some agents are just plain stupid and need to go back to selling aluminum siding.
 
Here is the latest on Imerica... Read carefully. It's from the Deputy Receiver of the Arkansas DOI. The DOI is now in full control of Imerica's operations. The message below states that Policyholder claims WILL continue to be paid as long as premiums are paid. However, agent commissions will NOT be paid until the DOI can determine whether Imerica can be rehabilitated or if liquidation is forthcoming. If Imerica IS liquidated, agent's commissions are the last priority under Liquidation law...

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TO: AGENTS / BBAGENTS/BROKERS OF IMERICA LIFE AND HEALTH INSURANCE CO. ("Imerica")

FROM: STEVE A.UHRYNOWYCZ, DEPUTY RECEIVER

DATE: NOVEMBER 20, 2009

RE: NEW BUSINESS AND COMMISSIONS

Effective November 18, 2009, Imerica was placed into Rehabilitation by Order of the Pulaski County Circuit Court of Arkansas where Imerica is domiciled. Among other things, the Order prohibits you from interfering with the receivership and with efforts of the Receiver and from taking any action adverse to the interest of Imerica. Arkansas Insurance Commissioner Jay Bradford is the statutory Receiver of Imerica, and I am the Deputy Receiver responsible for the day to day operations of Imerica.

For your policyholders, Imerica will continue to pay claims and service their policy so long as premium continues to be paid.

There are two ways the receivership immediately affects you. First, Imerica can no longer issue new policies while in rehabilitation, because Imerica cannot continue to accrue new liabilities. Therefore, new applications for coverage will no longer be accepted.

Secondly, commissions cannot be paid at this time. It is unclear whether Imerica can be rehabilitated or if it will have to be liquidated. In liquidation, commission payments are general creditor claims. Under the applicable receivership priority distribution scheme, general creditor claims are below administrative expenses and policyholder claims and expenses and cannot be paid unless there are sufficient funds to pay administrative expenses and policyholders in full. In the event that Imerica goes into liquidation, any commissions paid at this time would constitute an unlawful preference.

Should Imerica be rehabilitated, all commissions due would be paid prior to Imerica being released from rehabilitation. Whether Imerica can be rehabilitated or will have to be liquidated will be determined as soon as possible.

If you have questions or need additional information, please contact Imerica at 1-877-463-7422, Menu Option 3.


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Imerica Life and Health Insurance Company​

304 Inverness Way South, Suite 405​

Englewood CO 80112​

U.S.A.​



 
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time to roll some client to real insurance....not like I would have ever recommended them to any of my clients....
 
Do you have a hyperlink to that image? I would like to post that on my blog. Or a link to the page at the AR DOI would work as well.
 
This is what I feel like when situations like this happen:

Agent: I'm told there's a quick way to get to your house on Rt 3

Me: Actually it's faster but you'll end up at at a dead end around 30 miles down due to construction.

3 hours later

Agent: John, I'm really pissed. I took that short cut to get to your house, hit a dead end and now I'm lost.

Me: I said you'd hit a dead end.

Agent: Yeah I know but I never listen to anything so I took it anyway.
 
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