Claims and Undisclosed Drivers

[almostintears]

So its a toss up whether these claims by undisclosed children will be covered? That is probably what's ruining my loss ratios

It may be, however, the "insured" probably doesn't know this but even if they try to pull this again on the next unsuspecting insurance company, not disclosing "at risk" drivers in the home, the claim or accident, etc. should show up on the MVR as "pending" and not assigned to a specific driver to give a heads up to the next guy quoting them on insurance and I believe it's the same if you run a claims report ...at least that's what I find in my state. Won't help you out now though but eventually some of the "other" guys insured's may be contacting you somewhere down the road because they did the same thing to them ..... it does eventually catch up to them and they will pay dearly for it or end up being denied coverage.

By the way, I don't believe it's because of the nationality of the clients you are selling to (fresh off the boat).... it's because they actually KNOW that if they add a teenage driver, wife has numerous tickets, etc. they will pay the premium for it so they are going to pick the family member that will give them the better premium rate and list them as the primary. It's a money thing not a nationality thing.

 

[khang.mis]

Much of my clientele are undocumented

 

[Sales71]

Much of my clientele are undocumented

If your making money why are you complaining?

 

[USF3983]

Probably get your contract canceled at some point. We lost an appointment with MetLife early in our business's start. They were wanting to get our clientele more preferred and the PIP fraud in Florida was just starting. We couldn't keep up with their demand and lost the contract.

 

[djs]

Talk to your carriers and make sure you know where the claims are coming from. Guessing doesn't help.

Also, find out how long into the policies the claims are occurring. If you are having a higher percentage in the first 2 months than you are the rest of the year, you are either picking up claims for pre-existing issues or getting claims because they need a new car.

Are you writing full coverage with low deductibles are cars that should be liability only? I got burned on this in several claims. They get it insured, go crash it to total it, get the cash to buy a replacement because the transmission had actually gone out on the car and they couldn't sell it.

80% of the nonstandard market is actually good business to write. The other 20% will kill you if you don't watch out for it. They have figured out the system, or at least part of it, and use it to their advantage.

Dan

 

[khang.mis]

No its mostly liability. Half of my customers do not have driver licenses and cannot obtain them. I guess I will try to contact claims to see what's going on.

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If your making money why are you complaining?

If I lose the appointments I won't make money. That's not the concern yet thoug, the concern is that those companies get screwed due to improper rating

 

[insurance1822]

This may be off topic a bit..but why do you write this type of business? is there so much of it that it simply makes sense for the quick up front? I would literally physically remove non standard bum business from my office

 

[USF3983]

There's good non-standard stuff. I'd say a good portion of our business is non-standard. In my opinion, you were just asking for bad loss ratios with targeting undocumented workers. You have to diversify. I'd stay away from undocumented workers period.

 

[Sales71]

There's good non-standard stuff. I'd say a good portion of our business is non-standard. In my opinion, you were just asking for bad loss ratios with targeting undocumented workers. You have to diversify. I'd stay away from undocumented workers period.

The strange thing is this type of business the premium is not that much. I had a client that had a liability policy for non Licensed driver cost was $450 for two cars..i told him I do not do that type of policy. I did his home insurance only.

 

[USF3983]

Ah, I'm not familiar with that type of risk. I don't think I've heard of a carrier here in Florida that will write a policy for a non-licensed operator.

I can't say I've tried or even been presented with a case like that. I know if they can't get a hit on the MVR they give it an unverified MVR surcharge.

How do they drive around legally without a license?