How to Kick SIAA to the Curb??

Oct 26, 2016

  1. Heather
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    Heather Guru

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    These guys are draining the life out of me. First they don't want me writing outside of my local area, which is a depressed area. I was growing and doing great selling all over the state. The carriers they gave me my own sub-code are no longer competitive locally. I am tired of sending them money every five minutes for very little in return. I do not have the money to buy out my contract. I am wondering what happens to your book if you just stop paying them?
     
    Heather, Oct 26, 2016
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  2. indienoise
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    indienoise Guru

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    I don't mean to sound like an add...but it's undoubtedly in your contract. And I would be willing to bet very real dollars that it reads exactly like any carrier contract I've ever signed, when it comes to unpaid funds...
     
  3. insurance1822
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    insurance1822 Guru

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    They'll have you cut off. You don't have direct codes, you're still a sub code. Get a loan & buy out. If you can't afford the small cash expenditure to get the loan then you're broke & shouldn't be in business.

    sorry...it's the truth.
     
  4. nyc2phi
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    nyc2phi Guru

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    Pick up a good direct carrier in your state like Erie or New York Central Mutual and start moving your book.

    Where in NY are you ?
     
    nyc2phi, Oct 27, 2016
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  5. insurance1822
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    insurance1822 Guru

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    ^even if you did that, your buyout is based off the gross income of your agency. So you're still paying on the business with other carriers

    I understand her feelings though as I pay about 70k per year to them.
     
  6. MrGolf
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    MrGolf Super Genius

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    SIAA gives you territory limitations?? Wow. That's interesting.

    I'm not part of an aggregate/cluster so I don't know the ins and outs of that stuff. Had never heard that before.
     
    MrGolf, Oct 27, 2016
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  7. dbtechy
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    dbtechy New Member

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    I'm with them and I can sell anywhere in the state. Is this something they put into your contract?
     
    dbtechy, Oct 27, 2016
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  8. marindependent
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    marindependent Guru

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    Interesting piece of information... They do not want you writing out of your Area... STAY AWAY FROM SIAA... I guess.

    I would agree what it says in the contract is the best answer to the overall question. There may be a clause in there about failure to pay ..
     
  9. Heather
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    Heather Guru

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    My husband does not want to take out a loan on something he sees little value in. I have good business I can write today but the quotes came through the PL rater on carriers that I lack a sub code and they are not local. NYCM has gone up in my area and I have lost business, safeco has went up, lost business from them as well. I am tired of sending them money when they put limits on me. I am writing about 1 policy out of every 20 quotes now. I do not write non-standard since last year, I got tired of the service work and being a social worker for some of these people.

    It sounds like I cough up a lot of money or stay stuck with siaa.

    Still no commercial through these guys either, still too new. So I have to wing it on my own with commercial. I had a carrier come out here that wanted to appoint me, super competitive out here and they told the company no because I could access them through the PL rater. fing unwanted step child is what I am.
     
    Heather, Oct 27, 2016
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  10. whatyouwantfinally
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    whatyouwantfinally Expert

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    That has to be something the OP's master agency is pushing, it's not some national policy. I'm with SIAA and I've never heard a peep about staying local, mostly the opposite in fact.

    My guess is the OP's regional group was/is having loss ratio issues and the leader thinks encouraging local business will increase field underwriting. It's extremely unlikely such language is included in the contract. Master agencies often try to steer profitability by implementing "rules" that are really just preferences, as in not part of the contract. They're trying to protect their ratios/bonuses.

    If the OP goes back to writing anywhere in the state, produces and makes a point to keep the garbage away from partner carriers that pay the group bonuses there will be no issues. Show them your production isn't a danger to their ratios and they won't police you. They have better things to do.
     
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