Loss Run Requests

Oct 26, 2017

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  1. wornout
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    wornout Expert

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    Hello! I have a prospect who has requested loss runs from current agent 3 times, in writing. The agent is refusing because the agency claims the insured owes them from an outstanding invoice. Is this acceptable? She also called the carrier directly and was referred back to the agent. The client says the fees are for certificates not premium. Can you withhold loss runs?
     
    wornout, Oct 26, 2017
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  2. Markthebroker
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    No, I don't believe so. You can get them from the carrier directly. I have my clients do it all the time. They just need to be firm. They can also submit a letter to the loss runs department. As a matter of fact, earlier this year I brought on a client that owed a lot of money to the broker, and she still got loss runs.
     
  3. BADTROUT
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    Sidenote... I would love a commercial CLUE style reporting system... i.e. universal loss runs.
     
    BADTROUT, Oct 26, 2017
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  4. adjusterjack
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    After 35 years of analyzing commercial insurance policies I don't recall any provisions in them that obligate a company or an agency to provide loss runs.

    They are provided as an accommodation or courtesy to the customer and if the customer owes the agent money (no matter for what), she should pay her bill and then she will get her loss runs if she wants them bad enough.

    It's just like a college withholding a graduate's transcript for unpaid fees or tuition. Perfectly legal and (like the insurance agent) the best leverage that can be wielded over the customer.
     
  5. Markthebroker
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    That's right, there is no provision in the policies that obligate anyone to provide loss runs.

    That's because it's a LAW in most states. It doesn't need to be a provision, because it's the LAW!

    That's why there is no provision in my building's cc&r's against me setting my building on fire. Or smoking crack on the roof. Because it's already against the LAW!

    It's becoming quickly apparent to me that there are many people on this site happy to share their opinion. It doesn't necessarily mean they know what they are talking about.
     
    Last edited: Oct 26, 2017
  6. adjusterjack
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    Tell you what. Until you can name states and the statute numbers I will consider you one of those who don't know what they are talking about. Put up or shut up as we used to say in the schoolyard.
     
    Last edited: Oct 27, 2017
  7. Markthebroker
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    "Put up or shut up"

    It's interesting you use that term. If I provide that information (put up), will you give me your word you will stop giving advice on this site for the next 45 days (shut up) and use that time to study insurance laws and regulation? If I am going to spend to time to educate you with specific codes, I feel I should get a reward.
     
  8. djs
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    djs Super Moderator Moderator

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    Lots of things the policy doesn't say is required, but providing loss runs on request in a timely manner is a requirement. I can't cite the law for this, don't need to, its common courtesy. Not at all like withholding a transcript, that is a bad analogy.

    The insured doesn't owe money for the policy, so the withholding of loss runs is simply blackmail. Bad agent practice.
     
    djs, Oct 27, 2017
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  9. adjusterjack
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    Typical response from somebody who really doesn't know what he/she is talking about.
     
  10. adjusterjack
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    Common courtesy, yes, and I'm all for common courtesy. But common courtesy is neither law nor contract.

    Maybe bad agent practice, but good business practice to avoid getting stiffed by a deadbeat, and certainly not blackmail.
     
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