Over the last few years, we’ve been skeptical enough about Imerica to avoid selling their policies to our clients in Colorado. They started offering policies in 2003. Then in 2006, they stopped issuing new policies, but continued to maintain their existing policies. In 2007, they once again began selling individual health insurance policies in Colorado, often at prices that were significantly lower than other major carriers were offering on similar plans. The on again, off again nature of the company, combined with the too-good-to-be-true premiums were both red flags, and now it looks like things have taken a turn for the worse for Imerica.
As of November 18th, 2009, Imerica has been placed in Rehabilitation, and is no longer issuing new policies. During this process, the Arkansas Insurance Commission will be overseeing the day to day operations of Imerica, and for now, claims will continue to be paid. If it is determined that Imerica can be rehabilitated, they will continue to do business under the rehabilitation plan. If not, Imerica would be liquidated, and policyholder claims not paid by Imerica would become the responsibility of the life and health insurance guaranty funds in the states where Imerica was licensed. In Colorado, this group is known as the Life and Health Insurance Protection Assocation (LHIPA). LHIPA has a maximum benefit of $500,000 for major medical insurance, which is significantly lower than most of the benefit maximums offered on private health insurance policies in Colorado (including Imerica, which offered policies with lifetime maximums ranging from $2 million to $8 million).
If you currently have a policy with Imerica and are in reasonably good health, you may be able to qualify for a policy with another carrier. This will involve medical underwriting, but we can help you determine whether there is a company that would work for you, based on your medical history. If you are in very good health, changing to another carrier will be a relatively easy process. Please contact us if you have questions about switching to a new carrier, or if you would like to compare other options that are available in Colorado.