Advertising and Promotions

https://www.facebook.com/share/p/19pAHiVzCE/

SMALL EMPLOYER PLANS

1. As noted earlier, small employers are not subject to the employer mandate. For purposes of the Affordable Care Act, a small employer is one that employees between two and 50 employees, although states have the option to expand this limit to 100 employees, at the states discretion.

2. Small employers may obtain health insurance coverage through State exchanges that serve small businesses, known as Small Business Health Option Programs (SHOPs). SHOPS offer small group health insurance plans through private insurance companies; employers that qualify for SHOP coverage can select one or more plans to offer to their employees and can set the premium rate that they will contribute to the plans.

3. To encourage small employers to offer health insurance to their employees, the Affordable Care Act provides a tax credit to eligible small businesses and to small tax-exempt organizations that employs moderate- and low income employees. The credit subsidizes qualifying small employers for a certain percentage of the premium cost of the insurance they offer to their employees.

4. When it was first introduced in 2010, the credit was capped at 35% of the employer's premium costs (25% for non-profits). In later years, the credit increased to 50% (35% for nonprofits) of premium costs. As of 2024, the maximum credit amounts remain at 50% and 35%. The credit is available to the employer for two consecutive years.

CONSOLIDATED OMNIBUS BUDGET REHABILITATION ACT

5. Popularly known as COBRA, this act was passed to ensure the portability of Group Insurance in cases where an employee loses his or her insurance due to death or unemployment. The law applies to employers with 20 or more employees. COBRA allows employees or dependents up to 60 days to elect coverage continuation. Continuation of coverage is not allowed if a person obtains coverage under another group plan, HMO, or Medicare.

6. Employees and dependents who lose insurance due to termination, layoff, or reduction of hours below full-time may continue their group insurance, at their own expense, for 18 months. The enrollees cost cannot be more than 2% higher than the group rate. Dependents who lose their insurance due to death, divorce, or retirement of the employee may continue the group insurance for 36 months.

CONVERSION

7. Conversion allows an employee to convert his or her Group Insurance to an individual policy at the end of the continuation period. Conversion at the end of the continuation period optional. If offered, the conversion policy must meet State requirements. Proof of insurability cannot be required, and the insurer must provide coverage, even if the person would otherwise be considered uninsurable. The employee must notify the employer of his or her intent to convert within 31 days of the end of the continuation period.

OVERVIEW

1. Those who represent the insurance industry are charged with the duty of supporting and advancing the business of insurance through proper, principles, and ethical practices. To the extent that agents are committed to in guided by a code of ethical practice standards. It is virtually assured that they will be able to competently and appropriately fulfill their professional duties and responsibilities.

2. In this chapter, we will examine the foundation of professional ethics and discuss how ethical and legal behavior may differ from each other. We will also consider the fundamental ethical principles that should govern agents' professional activities. Accordingly, we will look at the insurance sales process and consider the ethical concerns associated with prospecting, obtaining and using a client's suitability information, making recommendations, completing applications for coverage, delivering policy, and providing ongoing client service. In addition, we will look at some of the important ethical concerns associated with specific products and when working with vulnerable client populations.