Questions to Ask When Hiring a Stop Loss Insurance Broker

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I once heard someone ask this question at a meeting. The kosten stop loss sbroker answered that his stock broker was quite happy to take any kind of stop-loss order. His broker would do anything he wanted for that business! For us mortals with less money than this, most brokers will just refuse. It is easier to just say no than argue about it. In fact, as the above story shows it is a matter of cost on the one hand though you rightly say that the kosten stop loss sbroker of doing it electronically should be very smallbut also there are kosten stop loss sbroker on the other.

Before I go into that, there are a couple of my newsletters see my web site Newsletters page that discuss this. Some online brokers were listed that did take stop-loss orders, but some may not be still in business and some may have changed what they offer. However, they would be a starting point. I think there may be at least one other online broker that now takes stop-loss orders, however I am no longer prepared to mention names because of issues I discussed in one of my newsletters.

I suggest you get a list of online brokers and start asking them. The complications are that many clients do not easily understand what a stop-loss order could do. A plain vanilla stop-loss order means that if a stock trades at a certain price, sell my holding at whatever price you can immediately. This means that a broker would hit the best bid. If you don't think that can happen, look at AMP!

The problem is that if the broker acted on the stop-loss kosten stop loss sbroker in this situation, it may or may not be what the client wanted. A dispute could arise. The client might say, but that is different - I now don't want to sell at such a price, I will hold for a rally.

Of course, this is perhaps a special case, but it makes the point. The client needs to be prepared to accept the full implications of their order, even in a disorderly market. The broker may find it better to not get into these situations. So, you will find that those brokers who do offer stop-loss orders will probably restrict them quite tightly.

You may, in fact, not be able to protect yourself with a stop-loss order in a big move against you - which is exactly when you logically need it most. So, make sure you ask lots of questions and understand exactly what your stop-loss order does and does not do. Stop-loss orders are available in the US stock market and most derivative markets. It can be argued that this is because of the greater risk in trading on margin - especially when the broker may be providing the loan and therefore also at risk.

The broker will want to be sure to cut you out of a losing position quickly - especially in kosten stop loss sbroker fast market against you. The fact kosten stop loss sbroker Aussie stock brokers do not generally have this risk may be part of the reason why they do not feel the need to provide this service - especially when it can lead to problems as discussed above.

By the way - I do not use stop-loss orders and would not - even if they were available to me. I invest in a timeframe that allows me to take decisions on end-of-day data. In rare cases where a stock is very close to my stop AND I am concerned about it, I would monitor it during the day.

Short term traders should never have their eye off the market. If they cannot watch it, they need an alert system. My broker provides SMS alerts - you can then do what you have to when kosten stop loss sbroker alert arrives. Ask Colin Why don't Australian brokers accept stop-loss kosten stop loss sbroker Development — Yakhnov Studio.

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Not necessarily, but there are a few issues to consider. Since the implementation of the ACA Obamacare , employers now have no upper limit on the cost of a claim, due to the requirement to have unlimited liability limits. Stop loss insurance will play a key part in limiting that risk for the employer. In addition to the ACA issue, which applies to all employers, a stop loss broker can help you determine whether you might want stop loss coverage or whether your current stop loss coverage is sufficient by answering just a few questions.

Ask this question, because you want to have confidence that you are placing your business with an experienced, reputable company. A stop loss broker will:. Some brokers will assume your underlying plan will be submitting your claims.

You will want to know who is submitting your claims, how they will submit them and how you will obtain your reimbursements. What work do you do behind the scenes to ensure we are getting reimbursed properly?

Insurance companies typically charge to access the information needed to submit claims to your reinsurance carrier. You absolutely want to make sure you are getting the best quote and by sending it out to more than one carrier you are ensuring that.

Expect to solicit at least 3 carriers, but is optimal. Do we need stop loss insurance when we are already self insured? What has your claims experience been like? What are your reserves? What is the number of subscribers? Do you have any ongoing catastrophic illnesses such as Hemophilia or Cystic Fibrosis?

How long have you been in business as a stop loss broker? A stop loss broker will: Make sure there are no hidden exclusions in your policy Market your business to multiple carriers they already have a relationship with to ensure the best quote possible Determine your direct need for insurance, ie deductible level, additional coverage options, etc. What will your role be once the business is placed to the stop loss carrier? An experienced stop loss broker will: Is there a cost for the claim reporting from the insurance carrier?

What information will you need in order to market our stop loss? In order to obtain the best quote possible for your reinsurance, your broker should obtain: Posted In Cost Saving Ideas.