Lpr Procedures

[isgutah]

When I write a new commercial account, I typically take an acord 35 with me and have the insured sign it, I then return fax it to their current agent to get the policy cancelled. Is there anything wrong with this? It usually works, but I recently had another agent tell my client that they would not honor the lpr because it did not come from his agency.

Thoughts?

My feeling is that the less they have to talk to their old agent the better.

 

[bobson]

Send it directly to the customers current insurance company.

 

[Guest]

I always have the client sign a cancellation and fax it to the old agent or carrier.

I require a signed cancellation to cancel any policy, and this just makes it easier.

I do this for PL and CL.

Then about a week later, you need to have the client call the old agent and make sure they cancelled it.

I have had a couple cases where I faxed it over and can prove it, and the old company never cancelled and the client was EFT'd again, so to avoid any hassles, better to be safe than have a new client have a bad taste in his mouth about the process.
When this happened once, the client called yelling at me......did you fax it? Did you fax it? well, I emailed him the proof and he was good after that, but his first phone call is to me, so I get the brunt of it.

Make it as easy as possible for the client

 

[Bertolinoins]

I do not like to replace commercial policies mid term. Depending on the industry and carriers... you can have some very unhappy new clients if you disrupt their X mod calculation or expose them to a M&D provision on a GL policy. Many vacant property policies are fully earned as well. I would not move something mid term unless the savings was huge and I could get copies of every policy and understood how everything was placed. I have seen some clients and new agents really screw things up. I had one client that was a contractor grandfathered in with Zurich for his whole package at an amazing GL rate and no new residential exclusion. Some agent gave him an auto quote $5600 less and his new controller jumped at it without giving me a chance to explain the situation... Sent the LPR into the carrier and got the whole package set up to be re-underwritten... Took his GL premium from $48k to a $250k minimum premium, the agent and controller were fired. The contractor was very active in the local BIA and builders exchange where he basically blackballed the agent.

I will take a mid term BOR, but I am very careful about cancelling policies mid term because it often gets messy.