Is this Misrepresentation? Changing Prior BI Limits

Aug 1, 2015

  1. insurance1822
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    insurance1822 Guru

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    When somebody's prior BI limits are 15/30...they get a much worse rate compared to when they have 100/300 or 250/500 coming in the door.

    The carrier systems ask (if you over declare..)

    1.) Who's the prior carrier
    2.) How long have they been insured
    3.) What's their BI limit


    Would it be misrepresentation to have the insured quick call their carrier & raise their BI limits prior to switching? For example if their new policy begins 09/01/2015 and you have them raise their current BI limits effective 08/25/2015...then how could that be misrepresentation? This means at the time the new policy we're writing goes into effect, they HAVE the higher limits

    Of course it's not what the carriers want BUT the fact remains, until they start asking HOW LONG HAVE YOU HAD THOSE BI LIMITS FOR... then it's a trick I think we must be exploiting to HELP THE CLIENTS GET THE BEST RATES OUT THERE.

    Now I know the douche nozzle agents will start talking crap saying "oh blah blah blah that's not how things are supposed to go & blah blah blah." Well I say we shove a finger right up the carrier's a$$es when we can (as they routinely do it to us w/ underwriting.) To me, this is a tool that's currently available & it's not technically wrong until they start specifically asking.

    Boo ya bring it
     
  2. Heather
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    Heather Guru

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    This is priceless, how in the world did you come up with this?

    I started playing with some quotes here, took a Titan couple with 25/50/25, been with Titan a year, raised them up 100/300/50. I quoted them in safe-co for 100/300/50 now Safeco considers them preferred and is offering the one year policy with the better commission rate. The system says I need to provide proof etc etc to maintain rates. But I would have the proof right here. They get better rate I get better commission. Now if I quote safe-co with 25/50/25 the system only allows a six month policy at a lower commission rate. The couple is claims free clean MVR's. Just had no proof of prior last year.

    Yes I will do this for all of my customers. Help them help myself.
     
    Heather, Aug 1, 2015
    #2
  3. indienoise
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    indienoise Guru

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    If they'r willing to go through the trouble of doing it, then why not?
     
  4. insurance1822
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    insurance1822 Guru

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    Started as a captive producer & you needed to be creative to get the best pricing. I only bothering doing it if I need the extra savings, but I always go the extra step (because you have to in this business.) Telling their realtor I saved them $1,100 sounds much better then saving $700 (and it can be THAT much of a difference.) I actually have a form email I copy & paste...

    ***Please contact GEICO & raise your "Bodily Injury Liability" coverage to $100,000 per person $300,000 per accident effective right away. If they require you to simultaneously raise other coverage's to facilitate the change happening right away or to avoid having to mail you forms...just raise whatever else is necessary to ensure the change goes into effect immediately. It will have a minimal impact on your cost w/ them for the next 2 weeks they'll be insuring you. Have them fax an updated declarations page to XXX-XXX-XXXX or they can email it as well. People make these changes on the regular to comply w/ car leases and/or work requirements so it's not uncommon****

    You NEED to make sure the change goes into effect prior to your policy start date. Sometimes people call up & if they're within 30 days of renewal, their carrier will make the change effective at renewal. Then you get a dec page that has the limits you want...but your preferred carrier won't accept that dec because it's future dated.

    And yes it benefits everybody. I've never been called out in all my years, however my plan would be this.."Well after sitting down w/ the customer & doing our job as their agent advocate & explaining their coverage's, they decided they wanted the increased protection immediately instead of waiting until our policy begins." With the future effective date discounts & the fact all my people are buying new homes (that are written future effective..) it's perfect. Now of course the carriers will know full well I'm manipulating their system, but for once I can put on the fake @$$hole smile they put on when they butcher people on inspections & jack peoples rates.

    Again, I believe it's our job to advocate for the consumer. It's NO DIFFERENT then a mortgage guy telling somebody to pay down a credit card before applying for a mortgage (because it will improve their credit score.) I make the analogy to credit scores & explain that everybody has an insurance score too. I say that most factors in your insurance score you can't change (length of time insured w/ the same company, previous accidents etc.) But your current bodily injury liability limits you CAN control...so why not?

    Woo yah boo ya. Up your game ladies & gentlemen. This could be the difference between placing a piece of business, getting paid way more commission & saving the customer even more money. Boo yah jocka roo jocka roo!!!!!!:yes::yes::yes::yes::yes:
     
  5. Waldo
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    Waldo New Member

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    So much extra effort to get their business for a couple dollars less a month. Value of having you as an Agent > price.
     
    Waldo, Aug 1, 2015
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  6. AZDave
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    AZDave Guru

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    Offering options is our job, and It makes you more of the insured's agent, not that carriers. If you want to go thru the extra time, go for it. Obviously, make damn sure the um/uim match - rejection forms are no longer valid here.

    Carriers use dozens of matrix programs behind the scenes to determine rate; bet they didn't plug that in!
     
    AZDave, Aug 2, 2015
    #6
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