Mutual of Omaha returns to Georgia as an issuing carrier.
In early 2010 and prior years Medigap plans were issued under the United World flag. That carrier continued until 2012 when United of Omaha became the new Medicare supplement issuing carrier.
A little over a year later United was replaced with Omaha Insurance Company.
Now the parent company, Mutual of Omaha will be the new Medigap issuing carrier.
What happens to the existing policies issued by Omaha subsidiaries?
As long as the premiums are paid, current policyholders can keep their United World, United of Omaha and Omaha Insurance Company plans. All these older blocks of business are closed to new applicants. Policyholder renewal rates will reflect loss ratios of those blocks.
“Each time an insurer opts to close a block of business it is faced with management and administrative challenges. For the most part, closed blocks are considered a drain on the company’s capital, but there are many other challenges that the insurer must overcome or at least mitigate,” says Karen Monks, an analyst with Celent’s North American Insurance practice and coauthor of the report. “It finally seems that these challenges are forcing insurers to make decisions on their closed blocks.” – CELENT
Just like previous roll outs, existing policyholders can apply for coverage with Mutual of Omaha and take advantage of new, lower rates. Medical underwriting is required.
Agents appointed to represent the Omaha companies may not be compensated when replacing an existing Omaha subsidiary policy with a new plan from Mutual of Omaha. An exception is made if the writing agent is the agent of record for the existing policy.
The current agent bonus program will continue for new Mutual of Omaha policies.