It is crucial that you understand and clearly communicate to your prospects and their employees the fact that limited medical plans do not provide comprehensive major medical benefits.

The potential clearly exists for confusion among employees. See the article below from the June 6, 2007 issue of USA Today. While we have never had a lawsuit or regulatory complaint, we are, and you should be, keenly aware that it is crucial for the industry that no one inadvertently misrepresents limited medical.

We are providing a valuable product and service for people who do not have access to traditional major medical. We should all be proud of that but, at the same time, recognize that we have not solved the entire problem for our customers.

In the early years of limited medical, some brokers refused to sell it because they feared exposure to their E&O. That attitude, for the most part, has changed but the risk is still there so, please, go out of your way to make sure that your clients fully understand and acknowledge that this is not major medical insurance.

You can view the USA Today article on-line at:

http://www.usatoday.com/money/industries/insurance/2007-06-05-limited-benefits-usat_N.htm?csp=34  (this link will open in a new window)

or click the button for an Adobe pdf print version