Coordination of Benefits Definition
Takes place when an insured and his or her dependents are covered by two or more Group Health insurance policies, which makes one insurer's plan the primary and the other insurer plan the secondary, thus making it less likely for the same claim to be paid multiple times under two or more policies. For example, if two working spouses were covered under their own and one another's Health plans, and one spouse became ill, his or her own employer's insurance policy would be the primary plan, while costs not covered under the primary plan would be covered under the spouse's secondary plan.
Ah, spring is in the air. What a beautiful time of year! The grass is getting green, the flowers are blooming, and the air smells sweet. It is just too bad that most of us take this time of year to make ourselves crazy. This is the time that we fully engage our strategy for July 1 renewals!
Health Insurance Baltimore July 1st is one of the most important dates in our industry. You dont need me to tell you this. If I were to look at your desk it would become obvious. July 1st is the second busiest date for renewals. (January 1 wins the prize for first.)
Small Business Health Insurance Michigan What this means to most agents and brokers is a late June of crisis, confusion, and searing competition in the marketplace. These are not the “lazy days of summer”. In fact, some of us need the extra hours of sunlight so we can feel good about working longer hours!
group health insurance florida How does this craziness come about? By being afraid of your own renewal clients and focusing only on the price of insurance policies. So, many of us scurry into the insurance marketplace like animals seeking just one nibble of pricing success. At the same time, competing with all the others for underwriter pricing crumbs.
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In other words, we do this to ourselves!
daycare insurance nj According to the C. R. Ekern & Company Annual Readership Survey, we go into the marketplace 58% of the time for the wrong reasons. To access the marketplace because we “anticipate competition” or because we “market all accounts”, is just plain nuts!!! This insanity falls under the category of we are paranoid about our own clients.
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Imagine taking close to 60% of the submissions out of the marketplace. What would you have left? What would you do with the extra time? How much more money would you make? How much more profitable would your firm be? How much better would your quality of life be? So, lets examine the alternatives to flooding the marketplace for the wrong reasons: Stop making the Marketplace your main Value Proposition. When you discuss your renewal strategy with clients, it is important to focus them on the value your organization has brought them.
Explain to clients the Marketplace shortage. As you know, because of your Consultative Broker readership, there are only 7 National Direct Contract insurance carriers. A client, who utilizes the marketplace regularly for pricing reasons, may find themselves in trouble in the event they really need it.
Learn how to create Broker Control. Consultative Brokers know that a client who values their judgment does not use the marketplace to “keep them honest.” These clients understand that the broker is the most important part of the equation.
Accept the fact that a renewal is simply a project. Sometimes we believe that the sun rises and sets upon the renewal date. Consultative Brokers accept the fact that the renewal is only a project. It is one of many projects they complete for the client throughout the year.
Have your renewals negotiated 15 days in advance. When an underwriter knows that you have Broker Control, they will provide you with terms well in advance. It allows you to get out of the way while all the rest chase underwriter pricing cheese.
July 1st offers you a great opportunity. As Consultative Brokers you can bask in the warmth of the summer sun. Or, if you chose to spin your renewals into the marketplace, you can use the lengthening daylight to work longer and harder hours. It is your choice. You can feast on your bounty of successful Broker Control now, or nibble at underwriting pricing crumbs later.
Rob Ekern is the president of C.R. Ekern & Company. You can reach him via his website at http://www.crekern.com.