The purpose of this article is to inform you of the two main agent classifications so that you are aware of who you are dealing with while shopping for a new insurance policy. The two types of agents are Florida health insurance brokers or independent agents and the captive agent. Let’s define the two.
The Independent Florida Health Agent – An agent who is self-employed, is paid on commission, and represents several insurance companies is an independent agent.
In understanding the difference between the two, which type of agent would you rather work with? If you said you would rather work with Florida health insurance brokers, or an independent agent, I’d say you are correct. A diligent Florida independent agent will show you multiple carrier quotes to start with while comparing similar plans. This comparison will show you which carrier has the most competitive rates. However, this is not the main reason you need an independent agent.
Shopping just on price alone is NOT in your best interest. Why? Because, carriers underwrite slightly differently from each other. For the purpose of health insurance underwriting, it is the carriers action of examining, accepting, or rejecting an insurance risk. Then, an underwriter determines the appropriate premiums for those risks which are acceptable or a rejection letter will be sent to the applicant if a risk is too great for a carrier to handle.
A Reason to Use Florida Health Insurance Brokers: Independent Agents Offer More Choice
Most people think they will get declined or have an adverse underwriting action if they have the slightest medical condition. This is not always true. Remember, carriers underwrite slightly differently from each other. In other words, they each have separate underwriting guidelines. This slight difference may make a huge difference in receiving a higher premium, decline, or an exclusionary rider after the application is submitted and the underwriter has made a final determination. Just so you know, an exclusionary rider is placed as part of a policy and blocks coverage for a specific condition.
Let’s take, for example, someone who is controlling high blood pressure with one single medication and we are comparing carrier A to carrier B. Carrier A states an applicant will be accepted for coverage, however, preferred rates are not available for the applicant and the Rx will not be covered in the Rx plan. Carrier B states that if a certain major medical deductible is selected, meaning a higher deductible, then no adverse underwriting action will be made.
Would it be better to take carrier A with a rider or carrier B without a rider? Well, the answer is carrier B. An exclusionary rider will block coverage for a certain condition and if a medical claim is processed, the insurance carrier will not pay the claim. You can imagine how dangerous a rider can be if it is placed for a more serious condition like polyps compared to not having coverage for a generic high blood pressure Rx.
In contrast, a captive agent only has access to one carrier so if you have a certain medical condition that won’t be covered, that agent has no other carriers to show you. You will either be stuck finding another agent or go it alone which can take time and cause aggravation. Florida health insurance brokers, or an independent agent should pre-qualify you so that when an application is submitted, you will have either no adverse underwriting action or at least be with a carrier that will deliver you the best underwriting results.
We at RTC Insurance Advisors are Florida health insurance brokers or independent agents. Contact us today at 352-200-2066 for a free consultation to see which carrier or carriers will deliver you the best underwriting action. We look forward to serving you.