Business

State Acts As Schill For Insurance Broker

A state worker sent us the accompanying flyer from the Idaho Department of Administration, questioning the propriety of using the official state seal to encourage insurance sales for only a specific broker.

Our brief inquiry revealed that a Utah insurance broker, Moreton and Company, approached the department of administration which was under the direction of Mike Gwartney at the time, offering “group rates” for auto and homeowners insurance for state employees. Good deal for the broker because it would be paid through a payroll deduction with no state contribution, cutting the costs of billing individuals.

The offer just started in October, but obviously there is some distrust among employees, despite the disclaimer in the state flyer. We would like to hear from some Idaho brokers and state employees about the rates compared to Idaho companies.

THE ACTUAL FLYER–

Comments & Discussion

Comments are closed for this post.

  1. Did the Utah parent company or the Idaho division arrange this? Looks like the Idaho division is well established since 1991.
    http://www.moreton.com/company-info/idaho.html

    EDITOR NOTE–We were given a name and number by Dept. of Administration to contact for details IN UTAH. The bigger issue here is the appearance of an “official” endorsement with the state seal, referring to”State of Idaho Employee Auto and Health Program”…urging employees to “Request Your Free Quotes Today!” Our reader felt it was nothing more than a sales pitch.

  2. Rod in SE Boise
    Nov 2, 2010, 7:06 pm

    This is not unusual or noteworthy.

  3. This deal brings up some
    questions—
    1. Did the state release a Request for Proposal (RFP)as is customary with state business, allowing licensed Idaho brokers to put forth a bid?
    2. Is the state receiving any override or compensation from Moreton for awarding them the business?
    3. How does an employee know that they are getting a discount and how much is it?
    4. If you leave employment will the policy be canceled, and if not, then what happens to the rates if you are not employed with the state?

    Since I am an independent agent I understand that everyone wants a good deal. But I also know that people want somebody they know and can trust when they—incur a claim, have a problem, or need to shop around. Will a large corporation like Moreton give the state employees the same service as a local independent agent?

    EDITOR NOTE–Great questions. Check with the “group coverage” person at the Idaho Department of Administration and let us know the answers.

  4. Is this what they mean when we see:

    BUY IDAHO?

  5. The State does this all the time. They also set up “retirement” workshops that are nothing but canned sales pitches for life insurance companies. I think they are sickening. What Dept. of Admin really wants to do, eventually, is replace PERSI with some private insurance based 401k rip off program for employees. Otter is hell bent on it.

    Otter wold like nothing better than to slowly suck the life (savings) of State employees. I don’t know how or why they do this stuff, or what they get out of it from the insurance companies. It all comes from the very secretive Dept. of Administration. Otter’s pitbulls.

    Dept. of Admin also made a sweetheart deal with the State health insurance provider, to allow them to not participate in the insurance extension for children until the age of 26 until July, next year. So if you are a state employee and youe kid is 25 and you want to enroll, they take your money (Blue Shield) and don’t inform you until your child has a claim, then they tell you your child is not covered and refund you. I’m sure Gwartney was behind this. They are counting on the healthcare reform bill getting squashed. The private sector must abide by the Federal rules and does not get the bye the Idaho Dept. of Administration gave Blue Cross for Stae employees. Call Dept. of Admin. they will tell you and say it is legal.

  6. You are kidding that the State would require an RFP, share with all licensed brokers and allow responsibility and fairness to prevail?? I would encourage everyone to look check out the legality of the process and use of the seal. You will find it illegal and certainly unethical.

  7. You think Wasden will look into it? I bet not. Republicans wouldn’t want anything to get in the way of corporate greed at the taxpayer trough. New clowns, same as the old clowns. After all, corporations are people too!

  8. This is a atypical hope this is legal.

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