Insurance FAQS
Q1. How do I get the best insurance rates?
Q2. I have had fraudulent claims experience on my plan, how do I get this removed?
Q4. How do I manage annual rate increases?
Q5. Is self-insuring a viable option?
Q6. Does our group retirement plan have proper plan governance?
Q7. How does my plan compare to the plans of other similar employers?
Q8. In selecting an appropriate advisor, other considerations which a plan sponsor should consider are: Does the advisor maintain the necessary experience and professionalism required by the plan and its members? Does the Advisor operate in full compliance of the regulatory environment?
Q1. How do I get the best insurance rates?
A1. Use a single brokerage for your quoting. Unlike most businesses, having multiple brokers (bidders) will not reduce your insurance rates. Using one brokerage will lead to the most competitive quote from the insurers. Provide detailed employee information to the broker that you select. Restricting information in the RFQ process sets a company up for a conservative quote.
Q2. I have had fraudulent claims experience on my plan, how do I get this removed?
A2. Your insurance broker should be able to mitigate any unusual claims or circumstances with the insurance company. Credibility of the broker will have a lot to do with how the insurance company responds to these types of situations.
Q3. What is the No Fee Audit?
A3. The No Fee Audit is a complete examination of your rate history and claims experience at no charge. The results are usually very compelling. We urge you to undertake this scrutiny of your plan.
Q4. How do I manage annual rate increases?
A4. This is an extremely important question. As the workforce ages, drug utilization increases and new more expensive drugs come to market. Managing increases becomes all the more important. NexgenRx’s drug adjudication model can reduce prescription expenses by double digits. Combine this with effective rate modelling and remarketing of the plan as necessary, and we can do a lot to reduce increases and in many cases achieve lower overall rates.
Q5. Is self-insuring a viable option?
A5. Savings can definitely be achieved by self-insuring some benefits that are predictable expenses. Realistically, a company should have at least twenty employees before considering this option. Life insurance, accidental death, long-term disability, travel medical and stop-loss pooling are lines that in most cases should not be self-insured.
Q6. Does our group retirement plan have proper plan governance?
A6. In this ultra-modern world with far too many lawyers, companies need to document every aspect of a group retirement plan. Let us show you how to stay within “Capital Accumulation Plan Guidelines” and update your “Statement of Investment Policies and Procedures”. This service is provided free of charge to our group clients.
Q7. How does my plan compare to the plans of other similar employers?
A7. We have extensive comparisons of company and industry plans that we would be pleased to share with you.
Q8. In selecting an appropriate advisor, other considerations which a plan sponsor should consider are: Does the advisor maintain the necessary experience and professionalism required by the plan and its members? Does the Advisor operate in full compliance of the regulatory environment?
A8. Advisors should be professionally licensed in both insurance and investments, carry appropriate errors and omissions insurance, operate within a regulatory environment where Regulators require advisors to engage in continuing education, and maintain a very good compliance record.
The Creative Benefits Alliance meets and exceeds these key selection criteria. With decades of pension consulting and service experience, we can address the challenges of member engagement & education faced by today’s plan sponsor. Members within our firm maintain Canadian Life License Qualification Program (LLQP) and Mutual Funds license credentials. Certified Financial Planners are available as part of our service.
