Not knowing how each company charges for state appointment fees is an expensive learning curve for large agencies.
If you sell with United Healthcare as the principal agent of your corporation, this article may save you thousands of dollars a year. Both you and your corporation may be paying state appointment fees, when the best practice (and the money-saving tip I offer you) is to only appoint your corporation.
Don’t confuse my point: both you and your corporation must hold non resident license in each state., but you don’t both need to be appointed.
Your corporation must pay the state appointment fees…but you most likely are also paying for you and an individual agent, and you don’t have to!
Any business that you write as a producer (and many principals don’t write) will use the corporate writing ID and show up as business of the company. One agent was appointed in all 50 states both as a corporation and an individual — costing him thousands of dollars in unnecessary fees these past few years since UHC started collecting state appointment fees.
As of now, this is not the practice of Anthem, Aetna, Allwell etc. but that stands to change at anytime. These fees add up and you can’t blame the carriers for passing them along to the agents. Many agents assume that this is a new profit center for carriers while in reality the carriers keep none of the fee. It is all paid to the state Departments of Insurance that levy the fee.
And I always like to put in a kernel of good news: there are still a handful of states (my home state of Indiana being one)(Go Hoosiers) that don’t charge any non resident appointment fees. Again, that can change at anytime.
The bad, bad news is that the states keep raising the cost for a non resident appointment. Florida is one of the most expensive states and they just raised their fee by $60.
Email me if you’d like the latest state appointment fee chart. Sgordon@gordonmarketing.com
Here are the steps you must follow if you find yourself in this situation:
- You must move your individual writing number into Servicing Status to preserve your renewals. You will still have to do a shortened version of annual certification to keep those renewals coming in.
- Email your upline your intent to cancel your individual state appointments. (Keep in mind that any appointments that have just renewed cannot be refunded).
- Write business using your corporation’s writing ID number.
- Save money every year and be happy!
Sylvia Gordon and her sister, Rebecca, run Gordon Marketing, one of the nation’s largest Medicare FMO/NMA offices. They have a team of over 100 that train and support independent insurance agents in all 50 states. You can find Sylvia’s weekly posts on LinkedIn and the sisters Youtube channel posts 2 training videos each week.