Quick Question For A Prospect Insured Through Another Broker

[jhplat5685]

hypothetically if i present a proposal to an insured and he is currently with another broker. If he likes my proposal and wants to go with it, what would be the typical penalty for him to cancel his current policy that is in force.

I am talking commercial, either a BOP or CPP.

Thanks.

 

[iiinycboi]

Re: Quick Question

short rate his unearned premium. every company is different though. some has 10% short rata some has a set 2,3,6 month earned premium etc...

depends on their carrier.

but if you can save him more money than the short rate return with the same coverage it probably would work.

 

[mmaedelins]

Re: Quick Question

My general rule of thumb is if the client is 6 weeks or less from his renewal date, just let him ride it out until renewal and have him sign the paperwork to start on his renewal date. If he's more than 6 weeks out from his renewal date, having him switch to your lower rate now would make more sense financially. His current company will just do a final audit and any unearned premium (if there is any) will be returned to him.

 

[BTFuzz]

Re: Quick Question

A lot of companies won't even short rate a policy like that. It really depends on that particular carrier.

 

[Guest]

Re: Quick Question

also depends on if it is a E&S policy or not, those are 25% earned premium.....

 

[arnguy]

Re: Quick Question

Quick answer: Maybe or maybe not.

 

[Focus LTC]

Re: Quick Question

Quick answer: Maybe or maybe not.

Thanks for the insight arnguy. Your posts are always very helpful and informative.

Thanks again!

Focus