New Agent Release Rules for UHC 2017

Discussion in 'Senior Insurance Forum' started by FMOadvisor, Aug 2, 2017.

  1. FMOadvisor
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    FMOadvisor Member

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    It looks like UHC will be changing their release rules sometime next week. Here are the highlights as I understand them, Has anyone else heard anything?:

    1. Agents can request a release and if their upline refuses to release them the release will still be effective 6 months later. The agent can continue to write business during this time. This is very similar to Humana and many other companies.

    2. GA's, MGA's and SGA's can request a release for themselves and every agent in their entire downline.

    3. All agents that want to transfer have to submit a new contract within 30 days after the 6 month waiting period is over.

    4. There will be a new "blackout" period where no agent can move from September 1st to December 31st even if their upline agrees to an immediate release.

    I know many successful agents who will be very happy about this rule change. I think it may be difficult to implement for agents with large downlines since every agent will have to sign a new contract within a 30 day window. Please let me know if anyone else has any information!
    :)
     
  2. wehotex
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    wehotex Well-Known Member

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    Wow. That's great news. I guess that UHC saw that many agents in that situation DO NOT write UHC products for 6 months to leave a crappy up line. That doesn't exactly help UHC's numbers and bottom line. I know several agents that had to go through that 6-month song and dance.
     
  3. timeflies
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    timeflies Well-Known Member

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    Who are some of the other companies that apply this practice? Is Anthem one of them?
     
  4. wehotex
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    wehotex Well-Known Member

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    Yes. Anthem also allows the agent to continue writing business while the 6-month period is occurring.
     
  5. FLM2
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    FLM2 Well-Known Member

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    Humana has the same rule-with no release letter there is a 6 month waiting period during which time you can continue to write business under the current upline. I am in the process of such a change so recently reviewed the rules.
     
  6. FMOadvisor
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    Yes, I know many agents who will be changing uplines to find someone who gives them the support that they need. I think it was a great move by UHC.
     
  7. Fisher
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    Fisher Well-Known Member

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    What is the future status of your existing book in this scenario? Are you still AOR after moving to a new upline?
     
  8. FMOadvisor
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    Yes, the agent remains as the AOR for all existing business when they transfer to a new hierarchy. UHC is very good about protecting the Agent of Record.
     
  9. Fisher
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    Fisher Well-Known Member

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    So then... all renewal commissions would continue to stay with the agent? (Just to be clear.)
     
  10. FMOadvisor
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    Yes, that is correct, the agent will retain all renewals (as long as they are contracted as an agent and not a "solicitor"). Agents are paid directly by UHC and retain renewals. Solicitors are paid by their upline. I don't know many uplines that would pay renewals to a solicitor unless they had a prior written agreement to do that.
     
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