United of Omaha 4-1-10 Rate Increase

[G.Gordon]

You have to make sure it is a new block before waisting your time. In Missouri they are making the companies mesh the new 2010 plans with the old books of business. The only way there is a new book for those companies is roll out new plans.

Take Christian Fidelity for example. Currently selling Plan F and Plan G. After June 1 they're still offering F and G, but adding C and N... even though they are still technically in the same book they will get seperate rate adjustments down the road.

MOO did the same thing with thier current offering in MO last year. In 2008 they rolled out UOO with A, F, and G. In 2009 they took a r/u on those and added Plan J. Plan J still hasn't had an adjustmnet. Starting June 1 they still have A, F, and G but add C, D, M, and N. It's still all ONE book of business as far as the state is concerned, but it'll be a sure bet that future r/u's will be typical of MOO practice. For example 15% on F and G, 10% on J, and nothing on the recently added plans.

A long way of saying... it may not be a new book of business, if you send the an application and keep them on the same plan you aren't protectiing them from increases.

 

[insurance0707]

I would think it would be a new block of business because it's a different Plan F than the one I signed him up for. I get what you're saying though...the insurance company might not look at it that way

 

[G.Gordon]

Depends on the states. A good indicator of if it is a new book may be if the rates are different before/after June 1. Take Nebraska for example. Thier rates change for plans prior to and after June 1. New book. Look at Missouri... the rates are the same. Same book.

I can understand the companies wanting it to be a new book for competitive reasons. I can also understand the states making them mesh the new with the old to protect the consumer from being trapped on a dead pool situation.

 

[Russ]

Maybe Moo/UO/UW is changing the way they give rate increases. I have in the past had a client that was past his 1 year anniversary get a rate increase and then 3 months later they got another one. That's why I was suprised when they said there would be a rate increase on 4-1-10 and it only showed about for about 4 or 5 clients, not all of them. Maybe they're changing it to just anniversary only

Check the effective dates of the policies on the "4 or 5" that are going up.