Return to Original Long Term Care Insurance Discussion Board Archived Index

Re: Hancock + Met = ?

Posted by Steve Eads, CLU on February 18, 2002 at 10:41:42:

In Reply to: Hancock + Met = ? posted by Ratco Pal on February 17, 2002 at 20:25:17:

: My wife and I are first time buyers considering various LTC carriers. We read in a discussion iem on this board that Hancock and Met will use "short form" underwriting for the new Federal LTC PLAN. CONSEQUENTLY, MANY RISKY PEOPLE CAN GET INTO THE POOL OF INSUREDS.Could someone please tell us:
: What will be the implications for policy holders of these two carriers?

It' s sure nice to see that the corporate officers of J. Hancock and momma MET has decided to confide in the brokerage agents about their actuarial assumptions and underwriting strategies. Or could it be someone's "CRYSTAL BALL" at work again.

RatcoPal, the answer is the actuaries alone will forecast and the underwriting department will attempt to create a pricing strategy that will cover the risk of adverse selection...it is a very highly technical educated actuarial guess, just like all actuarial assumptions. Will they guess properly??? Only time will tell. AND ONLY TIME.

This is the nation's largest actuarial, underwriting effort in the history of LTC insurance and maybe the health insurance industry in general. It is HUGE! Cast a careful eye and realize that the real truth is that God only knows and he "ain't" telling!!!

As for seperate reserve pools...it all comes from the same pot in a corporation...the financial statement! You can put it in as many pockets as you want, but it all belongs to the big POT!

Steve Eads, CLU

Follow Ups:

Re: Hancock + Met = ? William Gray Associates, LLC 00:46:26 03/08/02 (0)

Re: Hancock + Met = ? : : My wife and I are first time buyers considering various LTC carriers. We read in a discussion iem on this board that Hancock and Met will use "short form" underwriting for the new Federal LTC PLAN. CONSEQUENTLY, MANY RISKY PEOPLE CAN GET INTO THE POOL OF INSUREDS.Could someone please tell us: : : What will be the implications for policy holders of these two carriers? : It' s sure nice to see that the corporate officers of J. Hancock and momma MET has decided to confide in the brokerage agents about their actuarial assumptions and underwriting strategies. Or could it be someone's "CRYSTAL BALL" at work again. : RatcoPal, the answer is the actuaries alone will forecast and the underwriting department will attempt to create a pricing strategy that will cover the risk of adverse selection...it is a very highly technical educated actuarial guess, just like all actuarial assumptions. Will they guess properly??? Only time will tell. AND ONLY TIME. : This is the nation's largest actuarial, underwriting effort in the history of LTC insurance and maybe the health insurance industry in general. It is HUGE! Cast a careful eye and realize that the real truth is that God only knows and he "ain't" telling!!! : As for seperate reserve pools...it all comes from the same pot in a corporation...the financial statement! You can put it in as many pockets as you want, but it all belongs to the big POT! : Steve Eads, CLU : Steve Eads, CLU

Return to Original Long Term Care Insurance Discussion Board Archived Index

Learn More About Your options...

Request your Free Insurance quote and you will receive our Guide to LTC Insurance. The Guide is filled with more information to help you learn even more and its FREE!

Texas license # 1270417