Paying Client's Insurance - Helping Them Out or Illegal..

[indienoise]

I mentioned our neighbor was laid off and short on money to pay his cancellation, so my husband paid it for the guy. Next month he comes in the office says "I know I renew next month I will let you know if I am staying with you or not" I was speechless for sure. He stayed with us a few more months he cancelled for the 4th time a few weeks ago and I declined to re-write him.

On a better note I have helped people before and they have paid me back, used cash to pay - no proof I paid it. I then kept the cash they paid me back here in the office if some one else needs help.

May as well, right? I learned long ago never loan anyone money, just give it to them as a good deed. If you get it back, may as well pass it on.

And lol @ Shawn.

 

[Indiana_Adam]

Ive been tempted to do this, but it's a slippery slope. I think the DOI would not be happy either. It could be considered rebating as well. Just be careful.

 

[Norwayguy]

I mentioned our neighbor was laid off and short on money to pay his cancellation, so my husband paid it for the guy. Next month he comes in the office says "I know I renew next month I will let you know if I am staying with you or not" I was speechless for sure. He stayed with us a few more months he cancelled for the 4th time a few weeks ago and I declined to re-write him.

On a better note I have helped people before and they have paid me back, used cash to pay - no proof I paid it. I then kept the cash they paid me back here in the office if some one else needs help.

Somehow that response from your former client does not surprise me.

 

[thecommercialguy]

@INS1822 - It's already out, so do we get to find out? Was it out of your business or personal? I think we're all really curious as a few have asked

Hayato
closingcommercial.com

 

[agentinsouth]

So I have a good long term customer that has young children & the breadwinner lost his employment due to getting injured. They're facing penalties from the DMV if they don't reinstate their policy including fines & suspensions which will only make things worse. Their family is in tough times, they've always paid on time & they're GOOD people. I decided today to buy a money order to pay off their auto insurance for the year. All I told them was 'I'll take care of it..' and told them to call back later. When they call back I'll just say there's nothing due & leave it at that. Based off the commissions I've earned off them over the years, I'm still in the green. Ultimately in a 1 in 1,000,000,000 chance that somehow the DOI catches that..I'll just say what I did because I felt it was the right thing to do. As I re-quoted their insurance I realized that I could have redone their policy years ago & saved them money. I didn't do my job & cost them more money because of it by not reaching out for the rewrite. Now, it was the least I could do. That being said, do you think the DOI would legitimately penalize an agent for something like this? Have you guys ever done something like this?

Paying it personally is 100% a violation of the rules, you are personally licensed.
The only way i could see it work is to pay it out of the agency account, create an invoice to the client, and write it off at the end of the year as bad debt. I personally would not do it, people have no loyalty.

 

[fredbull337]

I have paid a down payment for a client before...they worked for a captive in our area who couldnt write the business. Down payment was $250 bucks or so. Told her we would bill her over a 12 month period. Still have not seen that money

 

[thecommercialguy]

The only way i could see it work is to pay it out of the agency account, create an invoice to the client, and write it off at the end of the year as bad debt. I personally would not do it, people have no loyalty.

Great advice. I'm saving this for a rainy day. Thanks Agentinsouth.

 

[vmbassociates]

Paying a cllient's premium for them - whether agency billed or direct billed - is rebating. It is also misdirection of funds if the agency is using other clients' premium-in-trust to pay that premium. The benefit to the agency is keeping the client. In the question above, the even worse problem is that the account was not reviewed regularly to be sure that the best coverage and price options were being offered to the client in the first place. Good workflows and management in any agency can avoid the need to pay a client's premiums for them and provide differentiating and meaningful work for clients who will want to stay with that agency because of the value the agency provides - without the agency having to break the law.

 

[insurance1822]

^from the tone of this post I'm gonna guess you're a female & most likely never sold in the field. Probably carrier side...agency education etc. Go lecture somebody on how to do something that you yourself never did.

Those who can..do. Those who can't..teach.

You're the Pfc who's taking pop shots from a known enemy position but refuses to return fire because the "roe's are unclear." You're dangerous & there's a reason personality types like yours don't own agencies. Cold hearted bit*h

 

[miscins]

Actually, in SC you can rebate auto commissions. It's the only line you can do that on and I do not understand it but it is legal.