TN Under 65 Supplements

[ksigmtsu]

I hadn't seen in mentioned in the forum yet, but TN has passed a new law in the legislature that all companies that sell over 65 supplements must also offer under 65 starting Jan 1, 2010. It's been signed into law already, a couple months ago.

They've also got a law in the state house in committee right now that gives a GI period on the policy renewal date annually for all supplements.

 

[arnguy]

I hadn't seen in mentioned in the forum yet, but TN has passed a new law in the legislature that all companies that sell over 65 supplements must also offer under 65 starting Jan 1, 2010. It's been signed into law already, a couple months ago.

They've also got a law in the state house in committee right now that gives a GI period on the policy renewal date annually for all supplements.

Are you saying it is retroactive to January 1, 2010?

 

[ksigmtsu]

Sorry 1/1/2011

 

[sman]

We have the same (or similar) law here in Georgia, but it takes effect 11/01/2010. I contacted my FMO for the MoO carriers about it and to see if there was any rate information. Below is the response he got from MoO regarding Georgia and Tennessee:

[FONT=&quot]We will not be releasing rates any sooner than mandated. So for Georgia, updated outlines will probably be available the week of Oct 27, 2010. TN will be Dec 29, 2010. There will be a 6-month Open Enrollment window mandated in both states - GA= Nov 1, 2010 - Apr 30, 2011 / TN = Jan 1, 2011 - Jun 30, 2011.[/FONT][FONT=&quot]Rates have not been filed yet, but talking to the Actuaries, it appears that the rates will be approx 2.5 - 3 times the rates for age 65.[/FONT]

I hadn't seen in mentioned in the forum yet, but TN has passed a new law in the legislature that all companies that sell over 65 supplements must also offer under 65 starting Jan 1, 2010. It's been signed into law already, a couple months ago.

They've also got a law in the state house in committee right now that gives a GI period on the policy renewal date annually for all supplements.

 

[Frank Stastny]

They've also got a law in the state house in committee right now that gives a GI period on the policy renewal date annually for all supplements.

Missouri has had that provision for some time, California has a similar one that is on the person's birthday. I don't think it is good for either seniors or agents.

There are agents who seek out that business and move chronically ill people to companies who have done a good job of keeping premiums reasonable. (Claims drive premium increases.) I have seen companies take huge increases in Missouri most probably due to that provision.

Insurance companies don't like that either. They "punish" agents in CA and MO because of it. Street level commission in Missouri with one of the companies is 10.5% for internal and external replacements. This means that if the prospect already has a Med Supp and the agent moves them from their current company to that company the agent will only earn 10.5% commission for the first six years.

Another companies street level is only 7% commission for internal and external replacements for the first six years. Both companies will pay "full commission" for the first year when writing someone new to Med Supps but reduce the commission by 50% for years two through six.

In the past it has caused companies to not be interested in offering Med Supps in Missouri. The dramatic reduction in commission is relatively recent.

The one thing that remains constant is that insurance companies are still going to make money even if it is at the expense of both the senior and the agent.

 

[ksigmtsu]

Missouri has had that provision for some time, California has a similar one that is on the person's birthday. I don't think it is good for either seniors or agents.

There are agents who seek out that business and move chronically ill people to companies who have done a good job of keeping premiums reasonable. (Claims drive premium increases.) I have seen companies take huge increases in Missouri most probably due to that provision.

Insurance companies don't like that either. They "punish" agents in CA and MO because of it. Street level commission in Missouri with one of the companies is 10.5% for internal and external replacements. This means that if the prospect already has a Med Supp and the agent moves them from their current company to that company the agent will only earn 10.5% commission for the first six years.

Another companies street level is only 7% commission for internal and external replacements for the first six years. Both companies will pay "full commission" for the first year when writing someone new to Med Supps but reduce the commission by 50% for years two through six.

In the past it has caused companies to not be interested in offering Med Supps in Missouri. The dramatic reduction in commission is relatively recent.

The one thing that remains constant is that insurance companies are still going to make money even if it is at the expense of both the senior and the agent.

I figured as much, I'm hoping the 2nd bill gets tied up in committee.
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It's our liberal Republican state house doing all this. Because they're pro business and hands off, and anti-regulation.

 

[Frank Stastny]

I figured as much, I'm hoping the 2nd bill gets tied up in committee.
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It's our liberal Republican state house doing all this. Because they're pro business and hands off, and anti-regulation.

You can help insure that will happen simply by sending a letter to your Rep and Senator expressing your concern. If they are having a hearing on the bill I suggest you go and if nothing else go on record as being opposed to it.

On the state level I have seen as few as five hand written letters influence how a Rep or Senator will vote.

 

[mrussell1306]

Hey Frank I tried sending you a pm but the system did not allow for it. Do you have an email address where I can send you a pm.

 

[Frank Stastny]

Hey Frank I tried sending you a pm but the system did not allow for it. Do you have an email address where I can send you a pm.

If you click on the e-mail option instead of the PM I have my e-mail there as well.

Or just send it to [email protected] .