LOUISIANA TO UNITED HEALTHCARE INSURANCE PRODUCER COMMISSIONS MUST BE PAID

Louisiana Insurance Commissioner Jim Donelon says United HealthCare Services Inc. and/or UnitedHealthcare Insurance Co., its subsidiaries and affiliates (collectively, “United”) can’t proceed with its intention to stop paying producer commissions on renewals of certain group health insurance products.

Donelon issued a cease and desist order to United, “to stop all efforts to implement such policy and to revise all applicable schedules of commissions and relevant rate and form filings to appropriately reflect the full commission payment required by law,” the commissioner stated in a release by the Louisiana Department of Insurance. “This action is meant to both protect Louisiana’s health insurance producers who are due compensation and preserve our authority in making sure insurers writing in Louisiana are in compliance with our laws.”

 

LDI was contacted in May by numerous producers who indicated that they had been notified of United’s intention to implement a zero-dollar schedule of commissions applicable to all policies sold to groups of greater than 100 insureds with an effective date on or after Sept. 1, 2019. Accompanying this notification was an inducement to work with United and affected insureds to negotiate a “replacement” agency fee to be paid by the insured to the producer and an offer by United to facilitate this payment…

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