Homeowner Billing

[doctor]

I am in the process of starting an independent after being captive. I am going through an alliance/cluster/aggregator. When I was captive, we would write a homeowners' policy and the captive company would bill the mortgage company and we were paid. I found out if I write a ho policy and the insured cancels mid-term that the mortgage company will not make a payment to the new company and the insured will have to front the payment. Of you who are independent, how do you best write and bill the new homeowner policy?

Thanks

 

[FL P&C Broker]

I think every situation is different. If the escrow account is over funded you can get the bank to make another payment. Let them know there will be a refund from the old policy.

 

[Guest]

Whats the difference in captive and IA in this regard?

What did you do when you wrote a new policy as a captive?

Why would it be any different?

 

[doctor]

The difference is that I was told my the alliance/cluster that the mortgage company would not make a second payment if they had already paid the premium and that the captive company must have had some pull with the mortgage companies since they were so large.

Anyway, back to my question...If I write a HO policy and the insured cancels, will the mortgage company paid the new company? If they won't, what is the best way to handle this without the insured coming out of pocket?

 

[Hefe]

The mortgage company may pay it again. From my experience, two things have to happen to get a second payment. There needs to be enough money in the impound account. You may also need to get the insured to give authorization directly to the mortgage company to make a second payment.

If there isn't money in the account, it doesn't matter. The insured will need to pay out of pocket to change carriers. They could put it on a credit card while they wait for the refund from the first carrier.
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As Red Blooded American mentioned, it doesn't matter if you're captive or independent. A mortgage company won't pay if the money isn't in the account. I highly doubt the captive carrier had any pull to get them to do that.

 

[Guest]

What makes you think that a insurance company has pull over a mortgage company?