Ethics of being Independent?

Discussion in 'General Insurance Agent Discussions' started by James, Sep 10, 2006.

  1. James
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    James Guru

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    Some suggest they are independent because then they are free to represent the client not the Carrier/Agency. Yet though every contract/appointment I signed as an independent clearly stipulate as a Broker for XYZ Company I represent them when offering their product and usually a booklet or pamplet comes along with the contract stipulating on the ethics of agent conduct for XYZ Company.

    Now that I have gone through an incident involving this very issue, and was told in no uncertain terms by the Carrier that I can't work against their interest, just how free is the Independent Broker when certain Issues rear their ugly heads?

    Inother words, if I walk in and I know I'm selling Product B from a list of Companies A and F, and once the application of Company F comes out I now represent that company and the interest of the company is now binding upon me, not the interest of the client. Now "interest" is not to suggest customer service, I'm sure that Company F wants and even demands good customer service but not service that would negatively effect the "Company" or "Us" that is stipulated in every contract and application I know of.

    This basically has to do with what I hear from some Independents here and other places. They as in some agents/brokers use their Independent Broker status as to suggest that they can at the end of the day work for the client not the Company. As in some suggest will act in the best interest of their client not the Underwriting Company. Now I've learnt in a very straight forward manner (no lines were cross and the company quickly let me know no lines should be cross or....) that if a serious problem arises and the interest of the Company is being weighed legally against the interest of the Client as the writing Agent/Broker my interest is legally binding to the Company as the Writing Agent. Now I keep hearing some agents and brokers suggesting other then what I know to be true, either in their brochures, talking points and claims made on these boards, just thought I would throw this up for discussion and get the views of others that may have had such expierences. Just glad I learn my lesson and no serious damage was done to myself and now understand what I can promise and what I can not promise and be truthful about it to my clients.
     
  2. Sam
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    Sam Founder Administrator

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    I don't know how compliant it is with the rules, but many wholesale brokerages will recommend that you take two apps when they are unsure of underwriting and it is a large policy. You just get the parameds sent directly to the brokerage and they apply with each.
    I just wrote a policy on someone from Rotterdam, who was not a US citizen and did not have a local doctor. I took apps for Met, AIG, Pru and Midland. In the end, Midland was the cheapest because they didn't care about his status. AIG and PRU would only consider regular preferred because of his residency.

    It may not have been compliant with each company, but as long as you are not pulling a case off of their books, they probably have little recourse. However, if you try to 1035 a case from one company to another, and your name is on the transfer request, I have heard that they can give you problems.
     
  3. James
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    I don't see multipul App's being a problem anyone is concern with. Even though you can submit a trial app.. Yet though I love Rotterdam, one of my favorite towns!
     
  4. Alhambra
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    Alhambra Super Genius

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    So, how did you get by the medical checks and medical history check with this guy, considering there were four underwritings?
     
  5. ksigmtsu
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    Might have scheduled 1 paramed himself and submitted it with all 4 apps. Just a guess.
     
  6. scagnt83
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    scagnt83 Guru

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    You just tell the paramed company that they need to send the work up to the other companies. Parameds are usually good for 4 to 6 months. Its not company specific really.
     
  7. ABC
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    I am trying to understand the point of this post.

    So you had a company tell you that you were walking a thin line on how you were conducting business with them?


    Were you pitting one carrier up against the other?

    Or were they pissed off that they paid for the exam and you ended up using it with another company?


     
  8. Dave020
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    Dave020 Super Moderator Moderator

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    I doubt you will get an answer since James left this forum several years ago.

    My question is why are people replying to threads that are almost 4 years old?
     
  9. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    It's a pity he's gone too. We didn't agree on much, but it was never personal, and I always enjoyed reading his take on things!
     
  10. Dave020
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    Dave020 Super Moderator Moderator

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    James was an excellent resource on life insurance.
     
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