Main sales are LTC?

James, here is something you might find interesting regarding Conseco and the industry in general- Not the following will come as a surprise to any of us.


SCRUTINY FOR INSURERS OF THE AGED. Charles Duhigg. The New York Times. 2007/10/03. Page C1. In the first week in October Senator Charles Grassley, the top-ranking Republican on the Senate Finance Committee, sent letters to 11 long-term care insurers asking for explanations of data collected by the National Association of Insurance Commissions (NAIC) indicating that complaints about the coverage increased 92 percent between 2001 and 2006 across the nation.

The data also showed that a majority of the complaints about claim denials were resolved in favor of consumers. The NAIC said that this pattern of error was not generally found in other lines of health insurance. Grassley asked Genworth Financial, Conseco, Penn Treaty American Corporation and other large long-term care insurers to provide details about how the companies handled claims, inquiries and denials and whether employees are rewarded for denying claims. In March the New York Times reported that the established procedures of some long-term care insurers, particularly Conseco and Penn Treaty, made it difficult, if not impossible, for some policyholders to receive payments, a report Grassley referred to in his letters. The report was also cited by the House Committee on Energy and Commerce when it began a similar investigation in May.

Genworth Financial said that the company intended to cooperate fully with Grassley’s request. Recently many long-term care insurers have announced plans to increase premiums because they had underestimated the number of policyholders who would eventually file claims. In June Conseco said that it was setting aside $250 million for the settlement of a class-action lawsuit on behalf of policyholders. A subsidiary of Penn Treaty has appealed a June ruling by Florida regulators suspending the company’s operations in the state because of an alleged failure to file audited financial results.

 
Genworth is a good company. I looked into their captive opportunity a while back. Their supps are competitive in some areas as well. But their sales goals are fairly high to be able to keep getting the free leads, and LTC and supps are the only things that count towards the goal. The leads seem typical of what you get anywhere else. They are from response cards.
 
Something to consider if you will be focusing on LTC - the underwriting is much more difficult to get through than products like life. I spoke with an LTC underwriter earlier in the year and they decline so many apps it's not funny.
 
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