Writing 15 policies a week ?

[moonlightandmargaritas]

For about 2 years a lot of people have sworn that writing business from home without being in front of the client is possible, and the best way to make a lot of money without killing myself. However, I always thought "this sounds too good to be true."

I do it. In Florida too. I have eighteen years of experience however.You must possess very strong telephone skills.

The reason I am posting is actually because I assigned my commissions, which I've never done before.

Not a good move. What happens when/if they go bust?

The broker told me that's the only way to get advances since, unless you work directly for a company as a captive agent. He said Golden Rule, Assurant & others will only pay as earned. It makes me uncomfortable, but I gather this is not uncommon.

You may have been lied to. If so, you will get lied to again, many times. Assurant will provide a twelve month advance to independents.

In addition, in UHO/GR and Assurant/Time, you've got two of the more non-competitive carriers in most parts of Florida.

Just hope somebody like me doesn't get in behind you...

 

[nstargazer]

You must possess very strong telephone skills.

I agree. That's a big concern of mine, which is why I wanted to train locally with a mentor.

Assurant will provide a twelve month advance to independents.

Thanks - that's what I thought. When I hesitated and said I never sign the assignment clause, he said that's the only way agents can get paid, since insurance companies won't pay agents directly. I thought he was just talking about Golden Rule, so I said "I'm sure another agency told me Assurant will pay advances directly to the agent." He said that's only if you are captive. BTW I didn't apply to Assurant yet, only Avalon and Golden Rule.

Well, I was just there a few days ago and already have an agent number with Avalon. He said that 90% of their business is writing United Health Care because they have the best rates. I believe they only pay as earned, right? Maybe he's also trying to save me the cost of E&O for now. Of course I'll get E&O, but I hate to spend a lot of money upfront before I even get started and Assurant & Humana require it before contracting.

Everyone else was going to charge me a lot for leads. He is paying 20% with a 75% advance and all the leads are free. I just got an email saying I forgot to write down the exp date on my credit card on the United Health Care application for appointment, so nothing has been submitted. I didn't get a copy of the paperwork, so I'll go to the office on Monday. I hate to pass up a good opportunity because I'm apprehensive.

Perhaps he didn't lie to me, but is misinformed. I need to go back and speak with him again. Is Assurant (Time) the only company that pays advances to independents? What about Avalon?

 

[moonlightandmargaritas]

"He said that 90% of their business is writing United Health Care because they have the best rates."

In Florida?

That statement is very troubling to me. Outside of a couple of very small, narrow geographic areas, this is NOT the case.

They may be comparing limited coverage UHO/GR policies to other's non-limited coverage, in which case you are harming the client.

Avalon is a third-tier, non-player, however they will pay advances. Did you ever hear of them before?

The leads are never free, you pay one way or another.

 

[nstargazer]

They may be comparing limited coverage UHO/GR policies to other's non-limited coverage, in which case you are harming the client.

Are you talking about the type of plans Mega sells? The more I think about it, maybe I made a mistake. After all, the average premium when I wrote a few policies for USHealth Group was about $700 a month for a family of 4. He said it's about $300 a month and showed me that 20% of $3600 is $720 per policy commission x 75%. I just want to do what's right.

 

[moonlightandmargaritas]

Are you talking about the type of plans Mega sells?

No, they're not indemnity hospital-surgical plans, but some have nasty limits.

After all, the average premium when I wrote a few policies for USHealth Group was about $700 a month for a family of 4. He said it's about $300 a month and showed me that 20% of $3600 is $720 per policy commission x 75%. I just want to do what's right.

Let's take a look...

For a 40 year old male and 37 year old female (both non-tobacco), 2 kids, male 12 and female 9, in the 33626 Tampa zipcode for a May start date.

GR "Copay Saver" with a $2,500 deductible. Office visits limited to two per person per year. No brand name Rx coverage, and very limited outpatient coverage. Monthly premium $332.

Upgrade it to real coverage with "Copay Select". Same plan, but take off the office visit limit, and add brand name Rx coverage and real outpatient coverage. Monthly premium $431.

Premiums will be considerably higher in South Florida, partly because GR doesn't have a good provider network there, they have to rent the Beech Street network, which gives them much less pricing flexibility...

Moral of the story: they only have a price advantage if you strip out some of the coverage.

In addition, because they're filed in Florida as an "assocation group plan", their premium increases are about double what the other companies' are.

What happens if your client has to take $1,400 per month of brand name prescriptions after a surgery?

What happens if they have a bill for outpatient services for $45,000?

Does the limited coverage help them then?

From all you've posted, these guys sound shady.

 

[nstargazer]

I don't know if I should start a new thread of just ask this question here. I just got an email from IAB so I called and it's an association I joined when I signed up for Golden Rule with the agency I mentioned in the above post.

I remember when I contracted with USHealth/Freedom Life, I was told that all health insurance policyholders have to join an association, something I never realized. I got a small commission, but I still don't understand why you can't just sell a health policy by itself.

I just called the toll free number in my email and the customer service rep told me I signed up for a website @ $9.95 a month. Maybe it's because I had a bad headache, but I don't remember doing that. Anyway, she was very polite and said I can send an email requesting they cancel my membership since the first month is free.

So please explain to me why agents need to join an association like this and the benefits of doing so. Thanks.

ps: How did I become a super genius? Must be those new vitamins!

 

[moonlightandmargaritas]

I remember when I contracted with USHealth/Freedom Life, I was told that all health insurance policyholders have to join an association, something I never realized. I got a small commission, but I still don't understand why you can't just sell a health policy by itself.

You can.

You can buy ifp from the following companies (not a complete list) in Florida, without joining an association:

Aetna, Avalon, Blue Cross Blue Shield, CIGNA, CoventryOne, HumanaOne.

Sounds like you're an unsuspecting newbie (no offense intended) and these jokers prey on it with schemes.

 

[Paradigm]

Stargazer

I'm not that familiar with USHealth/Freedom life are they a captive agency or are they a non captive contract?

 

[jamesflou]

You have been mislead. Most independent agents work for a Marketing organization who is direct with the company. The insurance company will pay you by ACH daily , weekly, as earned and advance you 6 , 9 and 12 mths in some cases.of annual commission. There are a few companies who only pay as earned but I couldn't tell you who they are. I wouldn't contract with anyone who wants me to assign.

 

[nstargazer]

You have been mislead. Most independent agents work for a Marketing organization who is direct with the company. The insurance company will pay you by ACH daily , weekly, as earned and advance you 6 , 9 and 12 mths in some cases.of annual commission. There are a few companies who only pay as earned but I couldn't tell you who they are. I wouldn't contract with anyone who wants me to assign.

Thanks for your reply. Could he be the FMO? I don't know if it's ok to post a link to an ad on Craig's List here.

INSURANCE AGENT NEEDED

I went to the FL DFS site and he's only been contracted with these companies since Aug 08, licensed since 2004. That doesn't mean he is dishonest, however.
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Stargazer

I'm not that familiar with USHealth/Freedom life are they a captive agency or are they a non captive contract?

Both (I think) I signed on as a "career" agent. I don't really like that term. It's not captive and it's not independent, but somewhere in-between. I mean, you are not an employee and can still be appointed with other companies, but you can only use the leads to promote their products. One problem I have (with any type of insurance) is when I know there is a better plan for the client, but can't offer it. I suppose that will always happen in a captive or career type position.

They do furnish career agents with leads. The first leads are supposed to be fresh, but many leads I got were recycled and very old. A few times, the company I called wasn't even in business. I also found out that the new leads first go to the Regional Manager who then distributes them to his preferred agents. To contract I paid $149 plus they charge $10.50 a week for E&O but it only covered USHealth. I think it was $14 if I wanted to use the E&O for other companies, but IIRC you had to get their approval. I really didn't stay with this company for very long, so forgive me if my memory is a bit fuzzy. I do remember I was not able to use another E&O policy and had to agree to pay the $10.50 a week. I don't know if things have changed since 2007. They charged for other stuff too. $25 was deducted from each commission for the E-pen up to $250. There was a 1% a month interest fee for advances. They also insisted I pay back the advances, but my policies were still in force so I refused. Eventually, my balance was zero, but then I couldn't get paid for months 10, 11 and 12. They kept saying I wasn't vested. I finally got a check last month (Mar 09) for those 2 policies written in June/July 07, but it took a lot of letters & calls. You need to write a certain amount of business to get paid your last 3 months commission and, although I had reached that goal with the 2 policies I submitted, the month my contract was terminated, only one was listed on the monthly report. They said one client changed her premium payment date. So they insisted that, as of that date, I technically only had one active policy. Honestly - I couldn't make something like this up!

I know we have now gone off-topic, but since you asked me about USHealth, I have a question for experienced agents here. My 1099s were not for the money deposited into my bank account. They represented the "as earned amount." Is this the way most health insurance companies report income? I certainly hope they don't send a 1099 for 2009 since my contract was terminated in 2007. Also, the amount reported to the IRS for 2008 was considerably more than what I actually got paid. That's why I was upset, but I finally got a check. In other words, they reported income they kept saying I didn't earn because I wasn't vested. (does this make sense?) Maybe this is the way all companies operate and, if you write enough business, it doesn't matter in the long run.