Aug 5, 2016
Question, Do you call your cancellations prior to cancel, After they Cancel, or not at all?
You're going to get all sorts of answers on this one and here's why:
CSR's don't want want to call because they believe it will come back on the agency if they don't call the insured to pay their bill in the future.
Sales reps will call because their commission is on the line.
My belief is that it's a case by case situation. There are certain accounts that always get a call and some that you don't ever call and just let it cancel.
It depends on things like, # of CNP's, # of years with agency, size of premium, customer's reputation within agency, etc...
If a $500 BOP goes in for CNP, chances are we are not calling on that one. Now if a $500k policy does, they will probably get a reminder call.
How's that for an answer?
arguments on the E&O exposure side as well
^I dismissed this notion as BS, but it turns out you're right here. When working cancellation audits you'll very quickly notice the repeat offenders & the fiscally irresponsible who wait until last minute every other month.
I pay close attention because everybody we're writing is a new home purchase so many times the scum bag title companies send checks to the wrong places or don't send them at all from closing. Or the insured's addresses get crossed in the move so they miss a bill if I didn't force their hand on EFT.
It really just depends upon your operation. Now that my operation is getting more streamlined & we're almost fully integrated w/ AMS we plan on only calling people 2x/year and then they're dismissed as a loser and that's it.
We call a week before, then three days before and a courtsey email this is typically our non standard market. Any other cancellations are rare unless it's for underwriting.
I was taken from my agent role and exiled to our premium finance company for half of june and all of July. I spent 3 out of the 5 workdays making cancel calls. To the same people over and over again. And then felt like breaking my desk in half with my forehead. I was told if we call once, we have to keep calling. Otherwise, its a E&O issue. I love when people call after they have been cancelled and ask why we didn't call to remind them. Then I look at the notes, tell them we did call and then ask them if they have noticed that they have not made an insurance payment in two months. After I ask them that they seem to understand.
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