EZ AGG & Spaggregate
Spaggregate
A “Special Aggregate Only Product” developed by Pan-American Life Insurance Company and East Coast Underwriters, LLC designed for a select number of Third Party Administrators to assist them in targeting fully insured groups under 250 lives. Spaggregate was developed to allow an easy, worry-free transition to self funding. Below is a list of selling points that Spaggregate has to offer your new clients.
- Lower Maximum Cost: The maximum cost of a Spaggregate plan is much lower than traditional specific and aggregate product and very close to a fully insured program. The aggregate corridor is much lower and thus maximum cost lower.
- Client Funding is capped - No More Cash Calls: The only money the client is required to fund on a monthly basis are aggregate premium rates and aggregate factors. Traditional specific and aggregate products require the client to fund amounts above the specific deductible and aggregate attachment point then wait for a reimbursement. Through a special banking arrangement with a Pan-American claim account Spaggregate will automatically and immediately fund any claims above the attachment point.
- No Specific or Aggregate Claim Submissions: Since only a select few TPA’s are offered Spaggregate the level of claim paying authority is extremely high. Specific and aggregate claim submissions are not required.
- No Lasers on Renewals: No Lasers will not be placed on renewal of this Aggregate Only product.
- Potential for Year End Reimbursement: Should the actual claims come in lower than the attachment point at year end the client will have a positive balance in their claim account, a feature that will never happen with a fully insured product.
A client who is hesitant with the conversion to self funding can now have the peace-of-mind they need to make the transition. Below is a list of the approval and underwriting guidelines that must be met.
- TPA must submit to initial claim audit and one every six months. A designated claim payor(s) must be assigned and approved by ECU.
- 0% commissions or overrides
- Banking account must be set up in SC at NBS SC in Spartanburg, SC
- TPA must notify ECU of all potential claims in excess of $10,000
- ECU must be made a Preferred Vendor of TPA
For more information, contact Mike Hirsch at (716) 662-4705 or mhirsch@ecumgu.com.
EZ AGG
(A Small Group Aggregate Only Product)
EZ Agg is an Aggregate Only Product developed by Pan-American Life Insurance Company and East Coast Underwriters, LLC designed to assist Third Party Administrators targeting fully insured groups between 25 and 200 employees with limited or no claims experience.
Product Features:
- The Aggregate corridor is reduced making the overall maximum cost “more affordable” for employers
- 12/12, 12/15 or 12/18 contract basis options are available (12/12 groups renew on 24/12)
- Aggregate Terminal Liability automatically included on 12/12 groups (if group does not renew an additional two months of premium is charged for six months of run-out protection)
- Monthly Aggregate Accommodation automatically included (client is responsible for funding up to the monthly Aggregate Attachment Point then amounts above that will be simultaneously reimbursed by Pan American)
- No Individual Specific Limits and no Lasers
- Premium rates are quoted with 0% commissions
Information Needed to Quote:
- Census including zip codes, SIC Code, Current Schedule of Benefit(s)
- Current and Renewal Fully Insured Rates
- Standard Disclosure Information (no sooner then 30 days prior to effective date)
**Optional Immediate Reimbursement Option also Available - Special Pan American banking arrangement allows for Immediate Reimbursement (Contact ECU for details)
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Spartanburg SC 29306
Phone: (864) 542-1565