Do rate guarantees lock our firm into long term commitments?
No. It is only the insurance company that is locked in. Rate guarantees assure you that the rate for your benefits will not increase for a specified amount of time. Most group disability and life insurance coverage can be canceled or transferred (with proper notice) to another carrier at the beginning of each month without any penalty. This allows you to increase benefits and lower costs whenever market conditions or other situations are presented – even if you just took out a new contract a month, two months, a year, etc. ago. When moving your coverage to another carrier, it is of significant importance not to have any gap in time between the cancellation date of your former coverage and the inception date of your new one.
Can the plan design of our firm’s long term disability coverage be changed at any time?
Yes. Plan designs can be modified at any time subject to the underwriting approval of the current carrier. Such modifications can cause certain rate changes that may result in higher or lower premiums.
One of our employees is being paid a claim by the long term disability carrier. Does this mean we cannot change our plan design or even change carriers?
No. All contracts we have seen specifically state that changes to plan design, or even cancellation of coverage with a particular carrier have no impact on current claims or benefits regardless of what stage in the process the claim is in past the date of disability.
How does ProLawInsurance get compensated?
ProLawInsurance is a broker agency which receives compensation in the form of commissions directly from the insurance company. Some agencies accept volume bonuses from all their carriers, ProLawInsurance does not. ProLawInsurance considers all highly rated carriers equally when determining which to recommend to your law firm. ProLawInsurance’s first and only goal is to protect and maintain our integrity to you, our client.
What is the “Perfect Storm and why is right now so important?”
The “Perfect Storm” is here right now and is the time when several things are happening simultaneously to create a unique result. As it relates to group disability insurance, the “Perfect Storm” is: (i) The entry of more insurance companies into the law firm group disability market and offering (with the goal of attracting business) new and expanded benefits with lower rate levels. (ii) Some of the major group individual disability insurance carriers have lowered their rates and increased their participation percentages (iii) The fact that the state of the nation’s economy is hampering the needed growth capability of insurance companies. (iv) Reports that claim incident rates have stabilized in many areas. (v) The differences in the impact that market and economic factors fact have had on certain insurance and reinsurance carriers. And finally, (vi) the fact that ProLawInsurance is now delivering its “advantage” to law firms directly as opposed to exclusively the carriers themselves – The “Perfect Storm.”
Can a change in Broker of Record be effectuated for just one line of insurance?
Yes. You as the client/customer can recognize and authorize any appointed broker to handle any line of insurance you wish – or all lines of coverage. Broker of Record letters must specify the lines of coverage you want your appointed broker to handle, the scope of authority the broker is to have and be signed by an authorized representative of your law firm.
Why ProLawInsurance?
ProLawInsurance was established as the consultant to insurance carriers to create and enhance their group disability offering to law firms. We now represent you. Our principals have spent decades in law firm administration and as consultants to group disability insurance carriers. This combination creates a unique intimate knowledge of both the buyers and sellers of these highly specialized insurance products. The nation’s leading insurance carriers came to us as a “first mover” in this niche because they recognized that our expertise enabled us to deliver to them the ability to address law firm insurance wants and needs. As a result, we delivered the law firm community “first of their kind” solutions that are maximizing law firms’ returns on their insurance investments and enhancing their competitiveness in the marketplace.
Does ProLawInsurance deal with just one carrier or many?
Many. Historically, the principals of ProLawInsurance had been the exclusive group disability insurance consultants for insurance carriers in the professional marketplace. Significant recent changes in the insurance industry have made it difficult to recommend and support only one carrier; and caused us to reconsider who we represent in the future. Those changes include numerous carriers making long term commitments to expand their benefits while reducing their premium rates. As a result, we now bring to you each and every carrier that we represent and that is currently offering benefits to law firms. Insurance carriers respond to competition and we drive that for your benefit and cost result. ProLawInsurance’s allegiance is to you, our client.
What spread of pricing variation have you witnessed in the group LTD marketplace?
The differences between carriers can be huge – another reason why we look at many. Taking only the quality, top tier carriers which have strong contracts of coverage in their own right, we have seen rate variations of up to 50% for similar products. These rate variations take into account not just proposals, but a comparison of actual in-force rates to those now proposed.
Can plan designs have major impact on cost and yet not on protection?
Yes. Certain in-force plan designs can, on first look, appear to provide a greater protection level or benefit, but in reality they do not. Therefore, many opportunities exist to modify a plan and obtain an immediate cost reduction while having no effect on the benefit – even if you do not change your carrier. In addition to being able to change a plan design and obtain a lower premium cost for identical benefits, we oftentimes can modify a plan design and get greater benefits for equal or even lower cost. Allowing ProLawInsurance to create a free, customized plan design for your specific situation can lead to the best of both worlds.
Are higher and guaranteed issue limits available?
Yes. Guarantee Issue limits have increased in recent times. When ProLawInsurance is designated as your broker of record and therefore given the opportunity to present your law firm properly to insurance carriers (possibly the first time), we will frequently see those insurance carriers offering higher maximum benefits to protect income properly and reflect the appropriate income replacement ratio. Have you ever said that your group disability plan is not the highest priority you have? If you are like most, you have. We agree that it is probably not the most important item on your desk, but we state that it is critically important and each firm must strive to get the greatest benefit for the most economical price – just what we do at ProLawInsurance.
Are medical exams required?
Very rarely. A medical exam for any eligible participant in a group is rarely required. Unlike with most individual disability insurance plans, group disability coverage, when reflecting group size and guarantee issue limits, does not require medical examinations. In other situations, like when an individual within a group wants limits that are higher than those guaranteed, an Evidence of Insurability is usually required for that increased limit to be considered.
We have Individual Insurance. It is expensive. Is Group the same price?
No. Group insurance rates are almost always significantly less than individual insurance rates. No replacement of individual coverage should take place without an extensive evaluation.
I already have Individual Disability Insurance. Can I get more by participating in a Group Policy?
Yes. Many group carriers do not offset with the benefits of individual disability insurance and therefore you can have both the group and individual coverage. This would allow for the total eligible benefit to be greater (the group benefit and the individual benefit added together). Some carriers even offer “combination plans” that wrap together the group and individual disability protection.
I have heard about Combination Plans. What can they accomplish?
Combining group Long Term Disability with group sponsored individual disability insurance (Combination Plan) can accomplish several things for the group and its employees. The individual disability part will provide individuals with a much lower (up to 35%) rate than they can obtain on their own. The same features and options can be added; just like when someone purchases their own separate policy. Neither the premium nor the benefits can change while the policy is in effect. This is a benefit for the individual as well as the group. Disability losses on the individual policies do not impact the group long term disability experience, thereby potentially reducing a negative effect of experience rating (if applicable). The group individual side can also provide guaranteed standard issue – no medical examinations! All that being said, a Combination Plan is yet another method to increase the total disability benefit available.
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