Conversion – Chubb & Minnesota Life to Zurich
This provides information and responses to anticipated questions regarding the conversion of Recuperative Care and Hospital Accident Plan insurance coverage currently underwritten by Federal Insurance Company (Chubb) to Zurich American Insurance Company (Zurich) & Accidental Death and Dismemberment underwritten by Minnesota Life Insurance Company (MN Life) to Zurich.
What is a “carrier conversion”?
A “carrier conversion” is a term used to describe when a block of business consisting of insurance existing coverages currently administered by Franklin Madison is changed or converted from one carrier to another carrier. In this instance, coverages are being changed or converted from Chubb & MN Life to Zurich.
Who is Zurich American Insurance Company and what is their rating?
Zurich is one of the world’s foremost insurance carriers and is rated A+. With over 150 years of industry experience, Zurich has earned a reputation as a trusted leader in the insurance sector.
What are the benefit changes as a result of this conversion?
For Recuperative Care, under the Zurich insurance plan, the insured will be covered for the following:
- $400 for every day of hospitalization due to a covered accidental injury, up to 365 days
- $200 for every day of hospitalization due to a covered sickness, up to 365 days
- Added Durable Medical Equipment (DME) benefit – provides coverage for DME prescribed by a physician or medical professional for covered injury; DME means any equipment that provides therapeutic benefits that includes but is not limited to: bili blankets; bili lights; canes; crutches; hospital beds; kidney machines; lifts, monitors; nebulizers; oxygen; pressure mattresses; traction equipment; ventilators; walkers; and wheelchairs (electric and manual).
See existing Recuperative Care scripting for more product details.
For HAP, under the Zurich insurance plan, the insured will continue to be insured for similar coverage.
See existing HAP scripting for more product details.
For AD&D, under the Zurich insurance plan, the insured will continue to be insured for similar coverage; however, there are benefit changes depending on the product and state as follows:
For CAP, the insured will be covered for the following benefits:
- Escalator Benefit
- Common Carrier Benefit
- Higher Education Benefit**
- Home Alteration and Vehicle Modification
- Permanent and Total Disability Benefit*
(*Note: This benefit is new to the plan. The previous plan included “Waiver of Premium” Benefit.)
For Ultra CAP, the insured will be covered for the following benefits:
- Escalator Benefit
- Common Carrier Benefit
- Higher Education Benefit**
- In-Hospital Indemnity Benefit
- Therapeutic Counseling Benefit
Note: In the states of FL & KY, the insureds are receiving a benefit change as follows:
- The new plan will no longer include the Total and Permanent Accidental Disability Benefit.
- The new plan will now include the In-Hospital Indemnity Benefit.
** The conversion notification letters included the following “Good News” message for this benefit
– the maximum amount payable under the Higher Education Benefit has been increased.
See existing Zurich AD&D scripting for more product details.
Note: The benefit language, limitations, exclusions, and terms of coverage under the new Zurich plan may be different than under the current plan, so insureds are encouraged to read their enclosed Certificate/Policy of Insurance carefully regarding the details of their new plan.
Will rates change as a result of this conversion?
For Recuperative Care: No, the rates under the new plan will remain the same (except in Missouri (MO) where the insureds will experience a rate decrease or see lower rates under the new plan).
For HAP: No, the rates under the new plan will remain the same.
For AD&D: No, the rates under the new plan will remain the same.
What will be the insured’s effective date of coverage with Zurich?
Coverage effective dates for current insureds will be based on the individual’s billing cycle and will be shown on the insured’s new insurance coverage document.
How will insureds be notified of this change?
The current insureds will receive a conversion notification.
Recuperative Care
HAP
MNL to Zurich CAP US conversion_ZURCGN
MNL to Zurich Ultra US conversion_ZURUGN
MNL to Zurich Ultra FL KY conversion_ZSSUGN
MNL to Zurich Ultra US_GNBB_ZURUGNBB2
The notification will consist of:
- A letter explaining the carrier change; and
- A Zurich Certificate/Policy of Insurance
What is the timing of the notification for the conversion?
This conversion will take place in phases beginning the week of August 19, 2024, and will continue through into 2025. In the comment screen, reps will see that a new fulfillment package was sent with the Zurich name. [If Chubb still appears on the coverage screen, the customer will be billed one more month under the Chubb product.]
Will the conversion package come from Zurich? What will the outer envelope on the notification mailing look like?
Consistent with our normal administrative practice, the logo of Zurich will appear on the outer envelope of the carrier conversion notification.
Does the insured have to sign anything as a part of this conversion process?
The insured’s payment of the Zurich premium will constitute acceptance of the Zurich American plan.
Will the insured’s billing be impacted by this conversion?
There should be no impact on when an insured’s billing will occur.
How will Chubb, MN Life, and Zurich handle claims during the transition? Will this conversion impact claims processing?
All claims incurred prior to the effective date shown on the Certificate/Policy of Insurance issued to each insured will be filed with Chubb or MN Life, and claims incurred on or after the effective date shown on the Certificate/Policy issued to each insured will be filed with Zurich.