Games Agents Play and who Cares

[AZDave]

Quoting a nice personal lines account. High value home and seasonal dwelling, couple of cars, umbrella. Discovered many gaps, solved them and proposed a real nice package. Knowing my competition (amfam), figured I should be around same premium with much better coverage. Not the case - I'm $700 high on two autos!

Come to find out his current agent has the autos rated for the seasonal location, rural AZ. Insured's primary is downtown Phoenix, drives to work every day.

Insured sees no problem in it, and wants me to do same. Current agent obviously sees no problem in it. I don't play the game, just not fair - does anyone care?

Any ideas on how to close this one up?

 

[BlockO]

Insured's primary is downtown Phoenix, drives to work every day.

Any ideas on how to close this one up?

Bingo! key words here: ..... "drives to work every day".

This is how I would respond:

ask your client "what happens after you have an accident and the claims adjuster suspects you are more than just a seasonal resident? How hard would it be for them to pull up your work record showing you work in downtown Phoenix?"

If that doesn't get their wheels turning (plus the value you added by filling coverage gaps) ..... if that isn't worth $700 to them, then let it go and move on to the next prospect.

 

[AZDave]

Appears to more of the incumbent trying to retain his client with a better rate. I don't want to be the guy that makes him feel stupid for allowing it. I did email him that question, what would happen with a claim ... ball is in his court.

What about, an agent that withholds the true information from his company, usually does the same to his customers?

Too harsh, maybe?

 

[insurance1822]

Do what you need to do to write the business. If the insured doesn't care then have him sign the app...get paid...and let him get screwed down the road. If he's not receptive to logic or reason then treat him as a number.

I just had the exact same thing happen. I lost an account because nationwide was rating him WAY different. I emailed him & the agent tearing it apart mentioning misrepresentation, fraud, rate evasion etc. the insured didn't give two $hits and left anyway. In retrospect I should have rated the same way, have him sign off & keep the account. If he had a claim denied down the road I would relish is his misery!!!!!!

 

[hesse]

Id be careful on that sounds like an E&O claim. He can sign off on it but if you allow him to do it you are the expert in the situation. Id let them walk

 

[djs]

Are there only 2 cars on the app? This is implied, but not stated. It would make a big difference.

Where are the cars garaged 185 days of the year?

Does he have a work vehicle as well?

I've had clients with cars they kept at seasonal residences, so part of the story may be correct.

Dan

 

[AZDave]

Are there only 2 cars on the app? This is implied, but not stated. It would make a big difference.

Where are the cars garaged 185 days of the year?

Does he have a work vehicle as well?

I've had clients with cars they kept at seasonal residences, so part of the story may be correct.

Dan

2 cars garaged over 185 days here in phoenix, no commercial auto. The guy is a doctor with 4 locations in Phoenix. They spend summer weekends at the seasonal. No one likes the Phx auto rates.

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Do what you need to do to write the business. If the insured doesn't care then have him sign the app...get paid...and let him get screwed down the road. If he's not receptive to logic or reason then treat him as a number.

I just had the exact same thing happen. I lost an account because nationwide was rating him WAY different. I emailed him & the agent tearing it apart mentioning misrepresentation, fraud, rate evasion etc. the insured didn't give two and left anyway. In retrospect I should have rated the same way, have him sign off & keep the account. If he had a claim denied down the road I would relish is his misery!!!!!!

Have the Carrier find a few incorrectly classed accounts and one could be looking at full blown audit, underwriting bs, etc. I would not want to experience it.

 

[Italianik]

Cheap @#$.

I would say I never rate with the wrong info, ever. Period. I fell like people like this are quick to throw it back at you if there is EVER a problem. Everyone wants a favor.

If he's a Dr. who is not willing to pay a little more to cover his gaps then he's an *** and I would tell him if price is the only factor, take the other offer and call you if anything changes with his current carrier.

It's like him giving you a script as a favor, would he do that? That's fraud too right? Same thing.

And who cares if his current agent does it, he is an *** too.

 

[1963]

Id be careful on that sounds like an E&O claim. He can sign off on it but if you allow him to do it you are the expert in the situation. Id let them walk

Hesse you are dead on point! This client is TROUBLE:
1. He allows you to jeopardize your professional livelihood to save a buck or two (a DOCTOR?)
2. He doesn't mind playing both sides of the fence to do it!
As agents, we have to keep our dignity! Too many other prospects to be seen to waste time in this dilemma!

 

[AZDave]

Bottom line, price should not be a factor in getting insured correctly. That is the point I need to make front and center.

Thanks all for the input. Ball is still in his court.

Dave