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... through our library. We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Health Insurance: Module V-H 4/30/2013 10:40:32 PM by CompleteMarkets Editor This content has not been rated yet. &# 160 HEALTH INSURANCE: MODULE V-H &# 160 OVERVIEW Health insurance has grown into a vast and complicated field involving many types of policies and programs: Group, individual, Major Medical, Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), prepaid plans (Blue Cross/Blue Shield), Dental plans, Long-Term Care, Medigap, cafeteria plans, and many more-in one way or another, these could all be classified as Health insurance. In this sales campaign, we will attempt to narrow the field to some basic Health plans, including HMOs and PPOs, sold to individuals and groups. Medigap, Long-Term Care policies, and other specialized coverages deserve more in-depth coverage than they could receive here. Cafeteria plans are covered in your Payroll Deduction' sales campaign. The P/C agent is no doubt familiar with the concept of a package policy' covering many eventualities in one contract. Health insurance can be thought of as operating on the same principle. Health insurance assumes risks from many causes and offers many benefits. From the consumer's point of view, Health insurance today is both an economic and a social necessity. It is the ...

... x No Thanks Loading.. Health Insurance: Module V-H 4/30/2013 by CompleteMarkets Editor This content has not been rated yet. &# 160 HEALTH INSURANCE: MODULE V-H &# 160 OVERVIEW Health insurance has grown into a vast and complicated field involving many types of policies and programs: Group, individual, Major Medical, Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), prepaid plans (Blue Cross/Blue Shield), Dental plans, Long-Term Care, Medigap, cafeteria plans, and many more-in one way or another, these could all be classified as Health insurance. In this sales campaign, we will attempt to narrow the field to some basic Health plans, including HMOs and PPOs, sold to individuals and groups. Medigap, Long-Term Care policies, and other specialized coverages deserve more in-depth coverage than they could receive here. Cafeteria plans are covered in your Payroll Deduction' sales campaign. The P/C agent is no doubt familiar with the concept of a package policy' covering many eventualities in one contract. Health insurance can be thought of as operating on the same principle. Health insurance assumes risks from many causes and offers many benefits. From the consumer's point of view, Health insurance today is both an economic and a social necessity. It is the method by which any member of the public may hold a contract or certificate that will not only make certain guarantees for the prevention and cure of disease, the maintenance of health, and the provision of care for accidents and emergencies, but will also provide protection from financial ruin that could ...

... agency, and an opportunity to participate in decisions. Most importantly, employees want to know that what they're doing is making a difference. They want to be rewarded both for the agency's performance and for their own performance. They don't want to be treated like every other employee, especially those who are simply coasting and who have retired on the job. This situation is insulting to good performers and counterproductive for the entire organization. To avoid the morale problems and higher turnover caused by long term but less productive employees, you should establish a performance-based compensation plan that ties in with meeting your employees' other needs. In addition to those listed above, these might include flexible working hours, job-sharing, switching from sick days to personal time off, an exercise room, a choice of employee benefits/cafeteria style programs, and so forth. A compensation system with salary ranges, bonuses, and commissions that remain competitive while reflecting each employee's functions and level of responsibility will complement the total employment package that you offer. The compensation system should provide written job descriptions that include the responsibilities, functions, education, and experience required for the position. Link salary ranges and bonuses programs to the job position and the individual's eventual performance level. Because automation enhancements or organizational restructuring might change job responsibilities over time, review all job descriptions and salary ranges each year. Although most agencies raise salaries about 4% a year, location and agency performance might affect that percentage. For 17 years, we've been conducting national Compensation Surveys to give agency managers an idea of what other firms are paying for comparable positions ...

... learned that the target market (the student body) represented a wide range of ethnic and cultural backgrounds-and the students told the dealership how important it was to appreciate these cultural differences. As one student put it, It is more important to be culturally sensitive to the group you are trying to market to, instead of going the all-American way. Creating a comfortable feeling generates credibility. If people think of you as an outsider, they're suspicious. The research culminated in a multimedia presentation to officials of General Motors and Todey, with a follow-up report in writing. As for marketing, the group hosted a full-blown promotional event on the campus. With balloons, blaring music, barbecued food, and shiny new cars, the campus was treated to a four-hour party on the lawn in front of the college cafeteria, complete with traditional giveaway key chains and pens. Everyone at Oxnard College now knows their party-animal friend-Todey Motor Co. The lessons for the insurance industry are plentiful. If an agency, or an agency and company, collaborated with students on such a project, just imagine what might happen: 1. The marketing students might become interested in insurance, thereby expanding the industry's pool of potential employees for the future. 2. An entire college student body would become aware of what a local agency could provide for them, not to mention brand name recognition that would come about for the insurance companies that participated. 3. Immediate Personal Lines business is always a possibility. 4. This is the big one: An opportunity would be created to begin forming relations with the homeowners, managers, ...

... to a drawback of both enrollment firm- and carrier-handled plans: As the agent who sold the employer, you're putting the credibility of your agency, including your P/C operation, into the hands of someone who is not affiliated with your agency. You need to to take care in selecting a provider, to know exactly what the provider plans to do for each case and when, and to follow along and monitor the cases as closely as you can. SECTION 125 PLANS Section 125 plans merit separate discussion because of their uniqueness. They have advantages and disadvantages that are distinct from regular payroll deduction Life or Health insurance plans. In fact, these plans are not payroll deduction plans in the real sense; they are payroll reduction plans. The plans, which are also known variously as cafeteria plans or flexible benefit accounts, are formed under Section 125 of the Internal Revenue Code, which permits an employer to enable employees to pay for certain insurance premiums before taxes, instead of after taxes. The code restricts eligible benefits under these plans to Group Medical and Term insurance; Group Disability insurance; Group Dental insurance; and individual disability, accident, hospitalization, dental/vision, or cancer plans. Interest-sensitive Life insurance plans cannot be sold under the provisions of these plans. Like traditional payroll deduction plans, Section 125 plans are often sold as an addition to the insured's in-place, employer paid Group plan. The basic form of a Section 125 plan is sometimes known as a conversion plan, and works like this: An employee reduces his or her gross pay by the amount needed ...

... agency, and an opportunity to participate in decisions. Most importantly, employees want to know that what they're doing is making a difference. They want to be rewarded both for the agency's performance and for their own performance. They don't want to be treated like every other employee, especially those who are simply coasting and who have retired on the job. This situation is insulting to good performers and counterproductive for the entire organization. To avoid the morale problems and higher turnover caused by long term but less productive employees, you should establish a performance-based compensation plan that ties in with meeting your employees' other needs. In addition to those listed above, these might include flexible working hours, job-sharing, switching from sick days to personal time off, an exercise room, a choice of employee benefits/cafeteria style programs, and so forth. A compensation system with salary ranges, bonuses, and commissions that remain competitive while reflecting each employee's functions and level of responsibility will complement the total employment package that you offer. The compensation system should provide written job descriptions that include the responsibilities, functions, education, and experience required for the position. Link salary ranges and bonuses programs to the job position and the individual's eventual performance level. Because automation enhancements or organizational restructuring might change job responsibilities over time, review all job descriptions and salary ranges each year. Although most agencies raise salaries about 4% a year, location and agency performance might affect that percentage. For 17 years, we've been conducting national Compensation Surveys to give agency managers an idea of what other firms are paying for comparable positions ...

... to a drawback of both enrollment firm- and carrier-handled plans: As the agent who sold the employer, you're putting the credibility of your agency, including your P/C operation, into the hands of someone who is not affiliated with your agency. You need to to take care in selecting a provider, to know exactly what the provider plans to do for each case and when, and to follow along and monitor the cases as closely as you can. SECTION 125 PLANS Section 125 plans merit separate discussion because of their uniqueness. They have advantages and disadvantages that are distinct from regular payroll deduction Life or Health insurance plans. In fact, these plans are not payroll deduction plans in the real sense; they are payroll reduction plans. The plans, which are also known variously as cafeteria plans or flexible benefit accounts, are formed under Section 125 of the Internal Revenue Code, which permits an employer to enable employees to pay for certain insurance premiums before taxes, instead of after taxes. The code restricts eligible benefits under these plans to Group Medical and Term insurance; Group Disability insurance; Group Dental insurance; and individual disability, accident, hospitalization, dental/vision, or cancer plans. Interest-sensitive Life insurance plans cannot be sold under the provisions of these plans. Like traditional payroll deduction plans, Section 125 plans are often sold as an addition to the insured's in-place, employer paid Group plan. The basic form of a Section 125 plan is sometimes known as a conversion plan, and works like this: An employee reduces his or her gross pay by the amount needed ...