Agency Ignoring Accidents when Binding

[newboxes]

Hello all,

I had a particular case where client had an open pip claim with the company. I was unable to bind an auto policy with any of the normal carriers due to the pip claim.

Client went to another agency and was able to bind with Safeco (a carrier that I also have). He showed me the documents and it appears that the other agency was able to ignore the accident that had occurred when binding.

Anyone have any experience with a situation like this? How would they be able to bind with Safeco? I had also called the carriers to double check if they would or would not accept a case like this. All of them said no, except the non-standard carriers.

I am in Florida, by the way. Thanks for reading, guys.

 

[stex]

There are always ways to game the system and bind ineligible risks, at least temporarily. And there are always rogue agents and agencies willing to take the risk for short term gains. Carriers do terminate agency appointments once they found out, especially those repeated offenders.

 

[BlockO]

I had a particular case where client had an open pip claim with the company.

do you know this because the client was up front with you about it, or because you discovered it on an MVR a/o CLUE report?

drivers sometimes fly under the radar because an accident or violation occurred too recently to be updated. did you run those reports? the accident might not be on there yet.

another possibility, although I don't have much experience with it, is that some companies will let an insured dispute the accident while the claim is still pending. not sure about Safeco, whether they allow this or not.

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There are always ways to game the system and bind ineligible risks, at least temporarily. And there are always rogue agents and agencies willing to take the risk for short term gains. Carriers do terminate agency appointments once they found out, especially those repeated offenders.

I agree 100%. but you can't jump to conclusions about whether or not the new agent had knowledge of the accident... especially for someone shopping from agent to agent. if they discover from one agent that the accident isn't updated on their MVR/CLUE, they may go to another agent and not say a word about it.... I've had this happen to me before.

but if the agent knows about the accident, and is intentionally hiding it, you're right. it will catch up to them sooner or later.

 

[newboxes]

do you know this because the client was up front with you about it, or because you discovered it on an MVR a/o CLUE report?

Yes, I had quoted and ran an MVR on a different carrier. On the MVR, it was listed as an 'open' pip claim. Client said case was still open due to lawyer issues.

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Client did mention that he called around to see if any agency can help insure them with the pip claim case. One agency said it was no problem. Of course it is very possible client was not truthful to me.

As mentioned, I suppose there are ways around the system. I suppose I shouldn't let that bother me too much. Thanks for the insight, friends.

 

[insurance1822]

There's plenty of times 1 carrier will find a claim (for example Travelers finds EVERYTHING..) and other carriers don't catch it. If that happens & I know there's a claim their system is not catching..I don't even think twice about it & bind. When it comes to proof of prior insurance, they all abide by "whatever our system pulls is what we go by & it's your responsibility to get prior insurance documents if our system doesn't find it." They make our life hell chasing down dec pages, so I love when I can bone them back because hey...if their system doesn't find it (just like w/ proof of prior...) then I guess it doesn't exist? ha

I've also seen Safeco's report come back "clean" on their website, but if you click the C.L.U.E reports you will actually see accidents that for whatever reason didn't port onto their rating system. Is it accidental or intentional on their part? I don't know. I just figured if it's on the C.L.U.E but their system isn't rating for it, then maybe for whatever reason they don't care about it. Never asked, been writing w/ them 5 years now and never had it come back.

 

[Indiana_Adam]

Insurance, I want your SafeCo underwriter. The home CLUE report claims aren't pulled over by the system, so Ive accidentally sold several without listing the claims. My UW is on it and has caught every one.

 

[INSUREGEEK]

I think (I used to work for them) that much of it depends on how the state reports tickets & accidents, and other insurers report claims. For example, in OH, an at-fault accident could ding you 3 times (citation, accident, and claim/CLUE) unless and until a live UW validates the info and overrides the rater. Of course, it rarely makes it that point as the agents are quoting other carriers.....

 

[newboxes]

Insurance, I want your SafeCo underwriter. The home CLUE report claims aren't pulled over by the system, so Ive accidentally sold several without listing the claims. My UW is on it and has caught every one.

Same here. For the other main carriers, underwriters are always on point as well.