1
A Member Enrolls
A licensed Producer enrolls a Member in an eligible health benefit plan. Commissions are expected to be earned as the Member remains enrolled and premiums continue to be paid.
The HICCA Strategy
How MABLE Holdings Works
MABLE Holdings provides funding to Independent Marketing Organizations based on future commissions generated by health insurance policies sold by licensed Producers. The process is designed to turn future commission streams into current funding.
From Member Enrollment to MABLE Holdings Repayment
A simplified view of a typical Health Insurance Commission Cash Advance transaction.
2
The Producer Earns Commissions
The Producer may otherwise receive those commissions over time as the Member's policy remains in force.
3
The IMO Provides Upfront Funds
The Independent Marketing Organization can provide the Producer with an upfront payment based on a portion of anticipated future commissions.
4
MABLE Holdings Funds the IMO
MABLE Holdings provides cash advances to the IMO based on future commission streams associated with a diversified pool of Member policies.
5
MABLE Holdings Receives Repayment
As commission payments are received, MABLE Holdings receives repayment of its advance and earns a service fee while qualifying Member policies remain in force.
Where MABLE Holdings Fits
MABLE Holdings does not sell health insurance policies to Members. Its role is to provide funding to IMOs based on future commission streams generated by policies sold by Producers.
This allows an IMO to provide Producers with access to a portion of their anticipated commissions sooner, while MABLE Holdings receives repayment as the related commission cash flows are generated.
How MABLE Holdings Earns Revenue
MABLE Holdings' economics are based primarily on two components:
- Repayment of the cash advances provided to IMOs.
- A service fee for each qualifying Member policy while that policy remains in force.
The service fee is separate from the amount advanced and is tied to continuing policy performance.
What Happens When a Member Cancels?
Member cancellations are an expected part of the business. MABLE Holdings seeks to reduce the impact of any one cancellation through diversification across many policies and Producers.
Consider two Member households whose policies begin at approximately the same time. Each policy generates a monthly commission stream supporting the broader pool of advances.
The Smith Family
If the Smith family cancels after several months, the remaining expected commissions from that policy stop, potentially creating a shortfall relative to the amount advanced.
The Jones Family
If the Jones family remains enrolled longer, commissions generated by that policy continue to contribute cash flow to the diversified pool.
Rather than relying on the performance of a single Member policy, MABLE Holdings seeks to manage
cancellation risk through a diversified portfolio in which cash flows from policies that
remain in force may help offset shortfalls from policies that terminate earlier than expected.
How MABLE Holdings Seeks to Manage Risk
HICCAs involve risk, including policy cancellations and the possibility that expected commission streams may not be realized. MABLE Holdings' approach emphasizes diversification and monitoring.
Diversification
Advances are spread across multiple Member policies and Producers rather than depending on a single commission stream.
Identifiable Cash Flows
Advances are based on anticipated commission streams associated with specific enrolled Members.
Ongoing Monitoring
Policy performance, cancellations, repayment activity and portfolio-level results can be monitored over time.
Portfolio Approach
MABLE Holdings evaluates the aggregate performance of the pool rather than relying on the outcome of any one Member policy.
These measures are intended to help manage risk; they do not eliminate it. Actual commission
collections, policy persistency, advance repayment and investment performance can differ from expectations.
Investors should review the Company's definitive offering documents before making any investment decision.
Want to Learn More?
Watch the MABLE Holdings investment overview, or schedule a one-on-one Zoom session with Elliot Goldberg to discuss how the HICCA strategy and MABLE Holdings Notes work.