The fact that more carriers today (66 percent) are using the employer situs state more often is one indicator of a more liberal approach. Another example of liberalization is the carriers’ increased willingness to enroll employees using the employer situs state when the employee lives in a state where the carrier is not licensed. Eastbridge’s latest Frontline™ Report, Situs State Regulation Practices of Voluntary Carriers, surveyed 29 carriers on their practices for handling multi-state accounts in the voluntary market.
Most respondents’ (80 percent) indicated that their situs practices have not actually changed in the last five years, with only six percent indicating that they are either “a little more” or “a lot more” conservative today and 14 percent indicating they are “a little more liberal” than they were five years ago. This stabilization in situs state policy in the last five years could be related to the higher levels of carrier satisfaction with their policies in this area. Ninety-three (93) percent of the carriers are currently satisfied with their company’s current situs policy and practices, compared to only 83 percent in 2012. However, the seven percent who are not happy prefer a more liberal stance overall.
Situs State Regulation Practices of Voluntary Carriers is an Eastbridge Frontline™ Report. Frontline Reports provide timely data on hot or new topics. Copies of the report are only available to participants and Eastbridge Information Partner Subscribers™.
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.