Conflict of Interest!

[briko3]

I not so worried about reporting them at all. I find companies who have off color practices end up getting exposed in the end anyways, I was just hoping to find an opportunity out of challenge. The whole Carnagie mindset "Think and Grow Rich" Great book if you have not read it... changed my whole way of thinking. I am always looking for opportunity when others give up or say no way!

Honestly, it rubs us all the wrong way, but why not move on to low hanging fruit? There is a TON of business out there to be written and rewritten. None of us is going to get rich off working our asses off for business that most likely isn't going to happen. You're right though....it's annoying.

 

[Bertolinoins]

That is pretty tame. I know of a property/HOAassociation manager who set his daughter up in an agency. They run every property through that agency the second they take over management. The properties and associations get hit with short rate penalties and are placed with inferior coverage. A few BOD's and property owners have seen the light and replaced them because of it but they have done it for years.

 

[isgutah]

I am here in Utah and I know exactly what agency you are talking about. I think that they get around any issue because they also write a ton of non owned business. They are very big in construction and trucking. That being said, I don't like them and their parent company owns almost all of the concrete batch plants and gravel pits in Utah. They have that market cornered.

 

[1manshow]

Wow, that's the first I've heard of that type of arrangement. Wonder if the carrier ever pressures them to grow the book? you know.. to 3 policies

 

[jodieB]

First time I have heard of this type of organisational structure. It would not surprise me as businesses can get around loop holes with ‘entities’ and create other companies and them being the parent one. It now becomes an ethical question weather you want to associate yourself with them?

 

[isgutah]

The parent company is Billion dollar holding company, that owns the agency and also several giant construction and manufacturing types of businesses. From my understanding it writes other subsidiaries of the bigger holding company, not necessarily the holding company itself.

 

[Scottyj]

The parent company is Billion dollar holding company, that owns the agency and also several giant construction and manufacturing types of businesses. From my understanding it writes other subsidiaries of the bigger holding company, not necessarily the holding company itself.

Yep you know the exact company I speak of. I dont know a ton about them or their practices as an agency but I guess I better being they target the same market as us. Our agency is very strong in California but we are new to Utah and Have our work cut out for us.

 

[LGilmore]

" In other words they have written their own business and are collecting commissions off of their own premiums and I can guarantee you the agent of record is not one of their office producers."

So they are using an outside insurance company? I'm not seeing the problem here. A subdivision of a company insures the company through an outside third party and collects the commissions on it through a licensed agent.

Or are they self insuring their risk?

the former I run into sometimes depending on the size of the business or if a family member is involved in insurance. Nothing to do there but look eslewhere for business.

If they are self insuring.. they have to follow what the state says are the rules for that or face fines or closure.

I am sorry people aren't kind to you about this situation, but the best advice is MOVE ON. No matter what you do, you will not win this business, ever. So blow off some steam, go for a walk, swear like a longshoreman, what ever works for you and move on....Anything else simply won't do you any good.

 

[Scottyj]

NOPE... they are using an agency they outright OWN. Its weird... I will not name names but if you go to their web site you see the *blank* Family of companies along the top (which it used to be at the bottom in fine print) but there are like 5 contracting companies which are dominant in the Good ol Boy way of thinking here in Utah and then bam out of the blue The logo of the insurance agency... I am sure the heirs of the multi billion dollar company had a true interest in Insurance right ?

But I hear ya LG i will just need to go for a walk and deal with it.

 

[dahonored1]

So not to be off topic, but what company writes concrete plants? That sounds like an excess lines account..