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That does happen, and in a soft market they can get away with it. The hard market is unforgiving to those agents as a majority of underwriters are looking to and will sniff out the bullshit. The best is when they write a policy that way and it gets audited at the end of the year and the carrier goes back to the beginning of the policy and collects all of the premium properly. Have fun explaining that to a client because you were trying to be a little slimeball.
Most of those agents don't realize the number on their quote is a deposit premium, you're really not clear of the final premium until after the year end audit (Which doesn't always take place, especially on small accounts so they could luck out)
My favorite recently was a hay hauler I was working on. They had a 45 unit fleet, and were non-renewed from their carrier because of a big loss. 45 units is too many for Progressive and I had the BHHC quote. The agent proceeded to tell the client to split his company into 2 LLCs so he could split 20 units onto 2 separate Progressive non-fleet policies, he said he would come up with a plan for the other 25 units. (he won't)
Few big problems, the agent couldn't come up with a solution for their GL, property, equipment or anything other than the autos. Also they have a trucking authority, which requires filings and all the units to be insured.
I checked and saw their filing had been revoked this month. Also I told them if they're going to take that auto quote I won't write the rest of their package (I already had the quotes, and I was not the incumbent agent so I had no duty in my mind to provide coverage)
I plan on following up before their next renewal to see how it's going with that agent.
Of course his promise was to 'save them a lot of money'
Sometimes the businesses just have to learn their lesson with the slimeballs...
