Each year, Humana sends out correspondence to brokers regarding your contract and appointment status. Did you receive a Term Letter from Humana? If so, don’t worry! You’re not alone. We’re here to help clear up any confusion and guide your next steps.
Types of Term Letters Broker May Receive:
- Appointment notification letter
- Contract termination letter
- Appointment fee reimbursement request
- Producer Contract Amendment letter
There are certain requirements that producers must meet in order to remain actively contracted with Humana. If you no longer meet these requirements, you will receive the aforementioned correspondence.
The full requirements are outlined in the Producer Partnership Plan (PPP). You can review Humana’s 2022 Individual Products Producer Partnership Plan for complete details.
What Humana Term Letters Mean
Understanding what the Humana Term Letters mean is important so that you can identify the next steps you need to take to reduce impact on your business.
Lack of Production Appointment Notification Letter
Here’s a sample:
For the state of West Virginia, the following appointment(s) are terminated; however, if you do sell, solicit, negotiate, or are a writing agent, agent of record, or in any manner or capacity represent these entities, you will be automatically re-appointed as long as you are properly licensed in the state and have an active producer contract at the time:
HUMANA INSURANCE COMPANY
This appointment termination is in accordance with your Humana Producer Contract. State regulations require that we notify you to return or destroy all copies of confidential information immediately for HUMANA INSURANCE COMPANY for the state of WEST VIRGINIA. If at any point you become re-appointed for this legal entity, you will regain access to these materials.
Humana is required to notify producers per state regulations if they terminate appointments for lack of production. Appointment changes do not impact current books of business or your state license status. The Humana Producer Contract remains active.
No action on your part is needed to maintain the appointments required for the current or future business. As long as you are properly licensed in the state where you are selling and maintain an active Producer Contract, Humana will automatically appoint you for the specific appointment that is necessary.
Lack of Production Contract Termination Letter
Humana periodically reviews a broker’s production output as a cost stewardship measure. If the review finds that you have no in-force business for longer than 12 months, they will send you an email or letter notifying you of a change in your overall contracting status (pending termination).
Once you receive the letter, you will have a specified amount of time to indicate your intent to maintain your contract with Humana.
If you receive one of these letters and wish to continue to represent Humana, it’s important that you reach out to your upline for assistance.
Appointment Fee Reimbursement Request
Brokers must meet Minimum Business Production (MBP) standards. If you have not fulfilled the MBP standards after 12 months (from contract date), you may receive a reimbursement request.
You will have 45 days from the letter date to submit payment. Here’s what the PPP has to say about status if you should choose not to pay the reimbursement:
“Should an Agent fail to meet at least one of these Minimum Business Production standards and choose not to reimburse Humana for all renewal appointment fees paid by Humana on their behalf, the Agent’s contract will be either terminated or placed in an inactive status under an Inactive Status Amendment.”
If you miss the 45-day window to reimburse Humana for their appointment fees, you may still submit payment in check form. Please note that after payment processing, you must visit the Producer Onboarding tool to re-contract.
Again, you should reach out to your upline if you have any questions or need assistance with this process.
Producer Contract Amendment Letter
Finally, Humana may send a Producer Contract Amendment. This shows a list of states you can conduct business in.
If a state where you know you can conduct business does not appear on this letter, it may be because Humana does not require an appointment in this state.
Did you receive a Term Letter from Humana? Don’t worry! No matter the issue you may be facing, Plan Advisors is here to help you maintain your successful business. You can visit our portal to find more in-depth information on Humana Term Letters or request support for help resolving the issue.