Medigap Carrier Graveyard

[LostDollar]

Everest

Also I am seeing Bankers fidelity all of a sudden on the CSG are they back?

In KS the old name and the new name both begin with "Banker's Fidelity".

The "new carrier" is Banker's Fidelity Assurance Company--BFAC--not the old BFLIC my closed book F plan is with.

 

[Yagents]

So with all these companies exiting the market, what happens to the existing clients?

Do they close the book making them eligible for GI at another carrier? Or do they keep the book open but stop writing new policies?

If so, do rates skyrocket?

 

[rousemark]

So with all these companies exiting the market, what happens to the existing clients?

Do they close the book making them eligible for GI at another carrier? Or do they keep the book open but stop writing new policies?

If so, do rates skyrocket?

When they stop writing new policies, that is considered a closed book. Since the inforce policies are guaranteed renewable thay cannot cancel them. They will continue to pay the claims or sell the policies off to another company. As the policyholders age and incur more and more claims, the premiums will skyrocket.

 

[goillini52]

Let's not forget about AFLAC a few years ago when they lasted less than a year.

 

[GoPokes]

I think we could break it into two categories, one and done companies, and shell game companies (mutual).

I made a list of the companies already mentioned.

Accendo
ACI
Admiral
AFLAC
American pioneer
Assured Life
Atlantic American
Atlantic Coast Life
Bankers fidelity
Capitol Life
CSI
CSO
Equitable Life and Causality
Everest
ForeThought
Gerber
Genworth
Golden Rule
KSKJ
Lincoln Heritage
Mutual of Omaha*
Secure Horizons
Sentinel Security
Sterling Investors
TransAmerica
RNA
Union security

Here are a few I thought of, that I used to write..

Universal American..
-Pennsylvania Life
-Constitution Life
-Union Bankers
-Marquette National Life
-PennCorp Life
-Penninsular Life

Thrivent
Loyal Christian Benefits Association
Oxford Life

So I then realized I could go on CSG and run quotes from the past, and I came up with a few more. I only looked in OK for the year 2012, plan G. I tried other years, and CSG wouldn't load....

Americo-Great Southern Life (this wasn't from 2012, but I never wrote it)
Heartland National Life
GPM Life
Standard Life
Madison National Life
Shenandoah
Combined (Chubb)
IAC - Individual Assurance Co
American Republic (Wellabe)
Sterling Life
Everence Assoc
Standard Life and Accident

Some of you lifetime medigap sales guys can probably come up with a few others... was it like this in the 90s (or earlier) with Medigap, the turnover of carriers?

 

[billyb]

I still get renewals from Celtic, Continental Life and UCT.

 

[rmhaire]

Didn't see US Fire on the list. They stopped writing in all states eff 4/1

 

[somarco]

AFLAC the first time.

and a 2nd time . . . possibly #3 as well? I lost track.

 

[somarco]

So with all these companies exiting the market, what happens to the existing clients?

Do they close the book making them eligible for GI at another carrier? Or do they keep the book open but stop writing new policies?

If so, do rates skyrocket?

as @rousemark said, policyholders get to keep their plan, even if the block is sold to another carrier. Equitable crashed and sold the block to SILAC to administer . . . and now SILAC is in trouble.

The block of these carriers that stopped writing new business continues on. There is no GI since the coverage remains in effect even if a new carrier assumed the risk.

And yes, rates increase, often by double digits as the block goes into a death spiral.

The Omaha carriers are notorious for swapping issuing carriers about every 3 years. When they close a block for a state rates start to climb because there are no new policies issued in that state by that carrier. The closed block is a group of folks getting older and sicker. Healthy folks leave and sick ones remain behind.

Other carriers do the same thing. Some of the Aetna subsidiaries are listed in this thread. Most of them are still very much alive but issuing new coverage in other states. So again, no GI.

 

[goillini52]

Pioneer
Continental General
Loyal American