Selling Health Insurance Without a License?

[Brian Anderson]

Zenefits, the fast-growing Silicon Valley startup, is being investigated for allegedly allowing unlicensed brokers to sell health insurance policies to businesses in several states. According to a BuzzFeed News investigation, managers at Zenefits knew their brokers needed to be licensed, but apparently took a lackadaisical attitude toward enforcing that little detail. You can read more at the link below.

Insurance Forums | Zenefits under scrutiny over allegations of unlicensed brokers selling health insurance

 

[HealthGuy]

Whats the big deal ? Aren't there unlicensed 'people' right now selling health insurance ? This trend seems to be all the rage.

 

[Tkruger]

Whats the big deal ? Aren't there unlicensed 'people' right now selling health insurance ? This trend seems to be all the rage.

If you're reffering to the requirements to be a Navigator...licensing/registration is required.

An individual navigator is defined as an individual performing the activities and duties of a navigator as described by Insurance Code Chapter 4154, 42 USC §18031(i), or any regulation enacted under 42 USC §18031(i). A navigator entity is defined as an entity performing or overseeing an individual's performance of the activities and duties of a navigator as described by Insurance Code Chapter 4154, 42 USC §18031(i), or any regulation enacted under 42 USC §18031(i).

per: TXDOI

 

[Heather]

We have this non profit in the area called Action for Older Persons that basically has unlicensed volunteers selling Medicare advantage and supps. They advertise that they have trained people to give you unbiased information but then they enroll the seniors right in the plans online, encourage them to not speak to an actual licensed agent and then slander plans they do not like.

I have come across several seniors who were out of thousands of dollars because they got bad advice from this group. I reported them to dept of insurance but since they are not licensed nothing can be done.

 

[Tkruger]

To be fair I was referring to the under 65 markets.

I don't doubt one bit that any underhandedness isn't happening across the board.

 

[maxherr]

I reported them to dept of insurance but since they are not licensed nothing can be done.

WHOA! If the Department of Insurance isn't going after unlicensed agents, then what are they doing? This is one of the preeminent responsibilities of the Department.

Now, if the Department takes the position that if a volunteer is not being compensated to assist a person to apply for a Medicare health plan, then they are sort of casting a blind eye on the situation. It wouldn't happen like this in California.

 

[Heather]

The group also dabbles in employee benefits, they have a volunteer that will advise business owners what to do because the volunteer went to a seminar on insurance and got a certificate stating they attended the seminar. I almost lost the largest case I ever had because of this group telling the business owner I was a scammer and voluntary benefits are a scam. They receive all this grant money and send out brochures and run ads.

 

[mkpm90]

A Navigator is not a licensed Health Insurance agent, and far from being one. They have website knowledge use and thats about it. They do not have an appointment to legally represent a carrier, and cannot represent clients when claim issues occur with a carrier. Some if these Navigators have given some of my clients bad advice, and often times do not enter my NPN/FFM when my clients provide them it. They are the equivalent of practicing without a license.

 

[jbage007]

A Navigator is not a licensed Health Insurance agent, and far from being one. They have website knowledge use and thats about it. They do not have an appointment to legally represent a carrier, and cannot represent clients when claim issues occur with a carrier. Some if these Navigators have given some of my clients bad advice, and often times do not enter my NPN/FFM when my clients provide them it. They are the equivalent of practicing without a license.

Just to clarify, but that should be "selling" (insurance) without a license.
Insurance agents/brokers/producers don't "practice," they just sell.

 

[mkpm90]

Just to clarify, but that should be "selling" (insurance) without a license.
Insurance agents/brokers/producers don't "practice," they just sell.

As for "practice," law dictates that we take a minimum of 24 CE credits each year for continuous education. This requirement for CE deems "practice" to be a proper term.