States with Special G.I. Rules for Medicare Supplements

Some states have odd guarantee issue rules or what they call "open enrollment", either once per year or all the time. Those rules usually cause the companies to pay the agent half, or zero, commission when exercising their guaranteed issue rules. Some insurance carriers interpret the rules to mean that they must treat it as "open enrollment" and therefore they pay full commissions, while others in the very same state pay nothing. In all cases, states with a yearly or all-the-time G.I./OE rule pay less commission to agents that states who have no such rule. This, along with the fact that the clients can easily leave without underwriting, either based on their birthday, annual policy renewal, or all the time - depending on the state, means that the lifetime value for clients acquired in these states is MUCH less for the agent. This means it takes MANY more clients to build residual income than in other "normal" states where one can only change companies and plans based on health qualifying to do so. Of course, it is great for seniors to be able to change plans, at will, but deciding on where to market or not market is a business decision. So, if the cost to acquire a client is the same everywhere, and it roughly is, and the lifetime value to you is much less in states with G.I. rules that ALSO make carriers pay the agent much less commission percentage, it is our belief that we should not invest time and money marketing in such states. For the latest information on unique state specifications regarding annual (or always) "Open Enrollment" or "Guarantee Issue" periods, see this LIVE document: (Presentation with Details) OR Click Here to see our internet cheat sheet on states

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