uninsurable in Florida

[Crabcake Johnny]

I don't think you have to go past this:

https://www.afidllc.com/suspend/

However if you did get past that you'll find something important missing in that brochure - the underwriting insurance company.

All they say is "....contains multiple insurance carriers." Ummmm, no. In the product brochure you must list any insurance company underwriting the product.

 

[somarco]

I suspect this is a self funded product, with or without reinsurance. The promoters suggest it is fully insured and issued by Protective but nothing to document this statement.

A self funded product is not required to identify reinsurance carriers. Since there are no issuing carriers, there would be no need to identify any carrier any where.

I do know the DOI in AZ, OH, KY & GA are looking at the product (and eventually the agents who promote it). There may be other states as well.

 

[Crabcake Johnny]

The bottom line for new agents is not to touch any of these "guaranteed issue" products with a ten foot pole unless they're being presented by a well-known and established insurance company.

Once you hear the word "association" run - very fast - to your nearest exit.

 

[exofficio]

Well, at least this has been educational!
I expected to see something along the lines of a UA type of low coverage plan, but this has been much more interesting.

 

[insureitnow]

Exofficio, I am having the same problem here in Florida

To all: Am I to assume that ALL guarantee issue indemnity plans out there are worthless?

 

[Crabcake Johnny]

I think everyone needs to realize how easy it is to set up one of these associations. This "AFICD" association is simply owned by Bruce Spencer who's an agent in Ohio. He runs "Spencer & Associates."

Go to the IRS website and grab and EIN number for your new association; "Association of Independent Chinchilla Farmers." 10 minutes later and for no money bam, you're now the owner.

Hit your state licensing site and register online - costs are minimal from $60 to $200 or so and bam, now you're registered as a business entity with your state.

Take your EIN print out down to your bank and now "A.I.C.F" has a business bank account. Then either grab a PO Box or rent out a cheap office.

Ok, so you Independent Chinchilla Farmers association is gonna sell accident plans - $29.95 for $2,500 and $42.95 for $5,000. Got Adobe Professional? Great - create a brochure, get a website.

Now, you're not gonna sell it - you market it to agents - pay 'em 30% commish and make everyone a "MGA" - have them create down lines.

Does the math work?

100 clients sign up for $42.95 for $5,000 in coverage.
$42.95X 100 = $43,00 per month
$4,300 X 12 months = $51,600
30% given away to the agent = $36,000 left to pay claims

At a $5,000 max pay-out 7 people out of the 100 could file max claims and you'd break even.

So will 7 out of 100 people incur $36,000+ in claims? Or will 100 people total with filing smaller claims total more than $36,000?

The point is if you have a computer and $200 you can start you own association - so research.

 

[Crabcake Johnny]

Exofficio, I am having the same problem here in Florida

To all: Am I to assume that ALL guarantee issue indemnity plans out there are worthless?

Yes.

 

[bcbroker]

The bottom line for new agents is not to touch any of these "guaranteed issue" products with a ten foot pole unless they're being presented by a well-known and established insurance company.

Once you hear the word "association" run - very fast - to your nearest exit.

Not a brilliant comment! The primary reason for the use of Association plans is to reduce the cost of doing business in each new state that they enter. They file as a group product that is domiciled in one state.
Aren't you an association? should we all run from you?
- - - - - - - - - - - - - - - - - -

I think everyone needs to realize how easy it is to set up one of these associations. This "AFICD" association is simply owned by Bruce Spencer who's an agent in Ohio. He runs "Spencer & Associates."

Go to the IRS website and grab and EIN number for your new association; "Association of Independent Chinchilla Farmers." 10 minutes later and for no money bam, you're now the owner.

Hit your state licensing site and register online - costs are minimal from $60 to $200 or so and bam, now you're registered as a business entity with your state.

Take your EIN print out down to your bank and now "A.I.C.F" has a business bank account. Then either grab a PO Box or rent out a cheap office.

Ok, so you Independent Chinchilla Farmers association is gonna sell accident plans - $29.95 for $2,500 and $42.95 for $5,000. Got Adobe Professional? Great - create a brochure, get a website.

Now, you're not gonna sell it - you market it to agents - pay 'em 30% commish and make everyone a "MGA" - have them create down lines.

Does the math work?

100 clients sign up for $42.95 for $5,000 in coverage.
$42.95X 100 = $43,00 per month
$4,300 X 12 months = $51,600
30% given away to the agent = $36,000 left to pay claims

At a $5,000 max pay-out 7 people out of the 100 could file max claims and you'd break even.

So will 7 out of 100 people incur $36,000+ in claims? Or will 100 people total with filing smaller claims total more than $36,000?

The point is if you have a computer and $200 you can start you own association - so research.

I know Bruce, and helped to train him in health sales back in the 1980's
What he did was wrong, but in my 32 years, I've seen a helluva lot worse than what he and Stephens-Matthews did, and btw, they paid all the fines and are still continuing to pay claims on the plans sold. Which is a lot better than some of the other things that were done back in the day that caused for all kinds of new laws in Ohio including the insolvency fund. I am a witness!