I am re-posting this because it's important that new agents or people about to become licensed considering their options know as much about the companies they are considering as possible, and not the version that the DM or Asst. DM is pitching. Here's what you will be facing if you select a company that has no morals or integrity:
A word of advice, order your own loss runs at least annually to see if there are any claims that you are unaware of. Especially true if you work for Farmers and carry their group sponsored E&O plan. Read about their latest ploy against their own agents and beware....
Farmers Subrogation Claims Against The Agency Force
Subrogation by Farmers against the agent’s E&O policy has become the norm as a business practice for Farmers when on the Farmers sponsored plan.
Most agents fail to understand that Farmers does not necessarily view this as true agent negligence. It is merely a business decision to recover losses through the relationship between Farmers and the Farmers Agency force group plan carrier, Arch. Farmers gets free reinsurance program at the expense of the agent who pays the premium.
In many cases, the agent followed underwriting procedure exactly, underwrote the insured, obtained a signed application and inspected the property and the claim was paid. This type of claim was reviewed by gathering details from the agent files and the Farmers allegation in the subrogation submission. The total losses paid were in excess of $2,000,000. A review was undertaken by the claims staff of the UFAA plan carrier Lexington. The conclusion was that many of these claims paid by the Farmer’s group plan carrier would have been contested if the agent were insured with the UFAA plan carrier as there was no clear breach of the agent’s duty to Farmers.
These claims on your loss history will limit your access to quality insurers, add significantly to your premiums for years thereafter and possible limit your access to carrier appointments due to paid E&O claims if you operate an independent agency after leaving Farmers. They try to hose you up while you work for them and beyond. Check your record - you may get a surprise.
Farmer's is a real piece of work! Farmers Subrogation Claims Against The Agency Force
Subrogation by Farmers against the agent’s E&O policy has become the norm as a business practice for Farmers when on the Farmers sponsored plan.
Most agents fail to understand that Farmers does not necessarily view this as true agent negligence. It is merely a business decision to recover losses through the relationship between Farmers and the Farmers Agency force group plan carrier, Arch. Farmers gets free reinsurance program at the expense of the agent who pays the premium.
In many cases, the agent followed underwriting procedure exactly, underwrote the insured, obtained a signed application and inspected the property and the claim was paid. This type of claim was reviewed by gathering details from the agent files and the Farmers allegation in the subrogation submission. The total losses paid were in excess of $2,000,000. A review was undertaken by the claims staff of the UFAA plan carrier Lexington. The conclusion was that many of these claims paid by the Farmer’s group plan carrier would have been contested if the agent were insured with the UFAA plan carrier as there was no clear breach of the agent’s duty to Farmers.
These claims on your loss history will limit your access to quality insurers, add significantly to your premiums for years thereafter and possible limit your access to carrier appointments due to paid E&O claims if you operate an independent agency after leaving Farmers. They try to hose you up while you work for them and beyond. Check your record - you may get a surprise.
