Stonebridge Commission Advances Revoked

Daytona_Guy

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FL and SC
Some of my agents are receiving the following notification today from an e-mail blast from Stonebridge Life.

I believe it's wrong to terminate an agent's advances without warning or prior policy notification at all. This will, in my opinion, have a negative impact on the selection of Stonebridge with this kind of punitive action without prior notice.

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Original email is here.
Important part highlighted below:

It is the goal of state insurance regulators to ensure that Medicare Supplement purchasers who are eligible for coverage should have full market access to coverage. The goal is to protect consumers in their quest for desired coverage at a competitive market price.

At the same time, it is fundamental to any functioning pool of insurance policies that rate stability depends on maintaining an appropriate mix of insureds of varying risk classifications. Producers whose business mix is an outlier with regards to claims loss ratios when compared with other producers in the same marketplace, can destabilize the pool and lead to excessive rate increases, which can affect and jeopardize the financial health of the entire pool.

Stonebridge Life Insurance Company asks its producers to solicit and submit a balanced portfolio of Medicare Supplement policies that reflects a cross-section of Medicare beneficiaries, without turning down or otherwise restricting applicants in a guaranteed issue situation or other applicants who are attracted to Stonebridge as a competitive carrier.

We have examined the loss ratios of your business and determined that your business mix qualifies as an outlier, so we are exercising our rights under Section 5 of your Producer Agreement and Sections 4 and 6 of your Agreement for Commission Annualization and terminating the Agreement for Commission Annualization. We will continue to monitor your business, and if your loss ratios come back in to line, we will consider reinstating commission advances upon your request. We will also consider any other factors that you or your upline wish to present, including whether you are writing a desirable profile of insureds which produces financially viable business, whether you are writing in an important location, or anything else that you wish us to consider. Please remember that Stonebridge will continue to accept all applications in accordance with its stated rules and practices, and you will be paid commissions as outlined in your commission schedule.
 
Does anyone really think this will encourage agents to send a good mix of business or just crap to Stonebridge?
 
I must have a good mix, I got the letter stating the same body, but no mention of my mix being of a high loss ratio. I don't take advance anyway, but try to keep those with obvious high claims situations off companies like MOO and SB.
 
I got the same email but no mention of advances being stopped. Their underwriting is so tough it's hard to put anything with them other than IEP's or GI's.
 
I got the email with no mention of my advances being cut.

Wouldn't matter unless they ever get competitive here.
 
There were two variations of email that went out. One was to agents whose Loss Ratios were high (this email was the one that terminated advances) and one to all other active agents. I think most agents in Missouri and Oregon probably received the 1st email.
 
Since Day 1 Stonebridge has been less than impressive to me and this only seals the deal. From all their ridiculous amendments on their paper apps before the eapp to stuff like this, I really think a bunch of lawyers must run that company.

I'll pay my own way to Ireland thanks, with compensation from all the other better carriers out there.
 
Since Day 1 Stonebridge has been less than impressive to me and this only seals the deal. From all their ridiculous amendments on their paper apps before the eapp to stuff like this, I really think a bunch of lawyers must run that company.

I'll pay my own way to Ireland thanks, with compensation from all the other better carriers out there.

Sounds just like Transamerica Final Expense; looks like the whole company is run by a bunch of morons.
 
No reason to ever deal with anything Aegon related.....MOO either....and Torchmark. For me anyway, I'd rather have a list of those companies I don't want to ever deal with and simply focus on the ones that are more agent friendly.
 
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