Agent Code Canceled

[Linda Liu]

Dear precious All,

For direct appointments, in general, does anyone know what happens when a certain carrier takes away my agent code? I understand I will not be able to quote with this carrier anymore. However, what happens to my existing clients who are currently with this carrier?

1. Will I have to rewrite them all to other carriers the moment I lose this carrier?
2. Will I have to rewrite them all to other carriers during renewal?

Or

3. Although I lost the agent code from this carrier, and can't write new policies with this carrier, I can still renew my existing clients.

Please help~ Thank you all very much~

 

[RickyG]

In my experience, the clients will receive a non-renewal letter that says something to the effect that they cannot renew policy because their agent is no longer allowed to sell their product. I have seen this with old codes that were not consolidated properly.

 

[marindependent]

What does your contract say?

 

[Linda Liu]

Thank you very much RickyG for your reply~ This is very helpful information~

Do you know if successful renewals count as production for carriers? Or do only new policies count as productions?

 

[RickyG]

The ones that I have done with nonrenewal letters sent out due to agency code being inactive do indeed count as new business when re-written on another code.

 

[Linda Liu]

Thank you very much marindependent for your reply~ Good point. I have always been writing through Smart Choice. They do not have volume requirements. Now I want to get direct appointments and most carriers have production requirements. So I am asking about this before even getting into it~

Most of my clients come from the church I go to~ They trust me so they give their business to me. Can't afford to tell them they have to get their policies re-quoted somewhere else if they want to still stay with the carrier...

Do you know if renewals count as productions too? If so, I do not have a problem~

 

[Linda Liu]

The ones that I have done with nonrenewal letters sent out due to agency code being inactive do indeed count as new business when re-written on another code.

I see~ Thanks RickG~ I understand if some other agent re-write my policies after my agent code is cancelled, then, it counts as production for the other agent~

However, let's say I currently have 100 policies with carrier A. Eath month, there will be around 10 policies of successful renewal. Do these renewals count towards my production of the month? or do only new polices written count as production?

Thanks millions RickyG~ I really appreciate all your replies~