Advice Please

[mariemerganser]

Sold a Citizens policy to a client. The premium was mortgagee billed so I called the bank with the insured on the line and provided all the new insurance information and premium due. This phone call was made on 2/26, the Citizens policy was effective 3/1. Yesterday received a cancellation notice from Citizens as apparently the bank never paid my clients premium. Called the bank, they said they never received an invoice. Well, I never sent an invoice because they didn't ask me to as I provided them everything they needed the day on the phone. Now my clients policy is cancelled back to 3/1, the bank is placing coverage on her property, and she has a lapse in coverage. Is this 100% my fault? I suppose I could have set a followup to make sure the premium was paid but I didn't. Please shed some light.

 

[fearsback]

follow up is most important in this business. Some companies allow up to 90 days for payment if it is escrowed for situations like this. I am not sure about Ctizens becaus they do everything differently then everybody else. I have someone in my office set up to do new business check ups to make sure carriers get all required documents and payment. I wouldn't admit fault as Citizens should have mailed the invoice to the mortgage company as well.

 

[mariemerganser]

Thank you. I actually just got off the phone with the state and they said that it is 100% the responsibility of the insured to followup with their bank to make sure their premium was paid. I do agree that I should have followed up, totally dropped the ball with respect to that but ultimately it's not my fault.

 

[ginniferhadley]

Always make a note of who you talked to, and the time and date of the conversation.

 

[Accelerated]

Thank you. I actually just got off the phone with the state and they said that it is 100% the responsibility of the insured to followup with their bank to make sure their premium was paid. I do agree that I should have followed up, totally dropped the ball with respect to that but ultimately it's not my fault.

While it is indeed the insured's responsibility, one of the primary duties of the agent, once the policy is sold, is to collect the premium or whatever it is that you do in a case like this. I am not an agent, but I deal with a lot of you on a daily basis, and some of you are some of the most diligent and detail oriented people I have ever had the pleasure of working with, while others are what I would call "lazy"; simply wanting to get the prospective insured to say "yes" and then let the commissions roll in, with little care taken to actually hold the insured's hand through the process, be it securing a policy (the right policy) or filing a claim. Don't be one of the latter types.

Yes, it is their responsiblitiy, but I would not let yourself off the hook so easily. Learn from it and make sure it does not happen twice

 

[ljubecak]

I have client with the same situation, what I am doing I am
asking Bank to send premium check to me and I make copy
and send to Insurance company,so It's 100% bulletproof premium/cancellation vise.

 

[InsuranceHelperGuy]

Like others have said always note who you talk to, when, and what the conversation entailed. Having good records is extremely important when proving that you did everything correctly.