It is not unusual for a P&C agent to have "binding authority" for certain lines of insurance.. I have never been involved with bonds but years ago when I did auto and homeowners, we could bind the coverage over the phone.
Sketchy or Not? Seeking Advice!
- Thread starter NightLily
- Start date
It is not unusual for a P&C agent to have "binding authority" for certain lines of insurance.. I have never been involved with bonds but years ago when I did auto and homeowners, we could bind the coverage over the phone.
- 11,519
Good! You're on your way.
I wouldn't recommend "playing investigator" other than finding ways to protect yourself. You may want to call the Surety Company and simply ask them about the process of issuing a bond "since you're new" -kind of thing. Then you can explain what you've seen and ask if that's a standard procedure, etc.
If YOU call the Surety Company, more than likely they will have THEIR recorded line and record the call of you asking questions and you can ask about this particular bond and what happened.
- 791
"However, the situation has transpired a bit; the "Bid Bond" he had me type up was the winning Bid, believe it or not!"
This guy is a crook and needs to get out of our industry. So we have an issued performance bond on a project. Average premiums on performance bonds are 3 - 4% of the project total, and sounds like it will be billed and deposited right into the agency account, or maybe a special trust account. Pure fraud and embezzlement. The Surety company has no clue it is issued on their paper, but they need to be made aware, somehow. If you have proof positive of this, I would definitely send it over to Dept of Ins and the Surety company, after your two weeks.
Good Luck to you.
Dave
This guy is a crook and needs to get out of our industry. So we have an issued performance bond on a project. Average premiums on performance bonds are 3 - 4% of the project total, and sounds like it will be billed and deposited right into the agency account, or maybe a special trust account. Pure fraud and embezzlement. The Surety company has no clue it is issued on their paper, but they need to be made aware, somehow. If you have proof positive of this, I would definitely send it over to Dept of Ins and the Surety company, after your two weeks.
Good Luck to you.
Dave
- Thread starter
- #24
Thank you for your reply. It is true, we do have Binding Authority with some companies to go ahead and Bind a Policy like Property, GL, Worker's Comp., etc. But the Surety Company specifically told me that they were not going to Approve this Bond without seeing the customer's Business Financials first. When I tried to tell my boss this he became very agitated that I had contacted the Surety Company and told me no such thing was required. However, that same day, I heard him call the Surety Company and ended the call with "Ok, I'll get them to you right away" (he doesn't have a Computer so it would have had to come through me). Now, this was after I had typed up the Bid Bond and handed it to the customer. After that phone call, my boss came by my desk and told me that he was right, no financials were required, when I was pretty sure it sounded as if they had told him otherwise (which I later called them to confirm that financials were required before they would approve a bond). He actually brought me the Financials today and told me to send them in. So we will see what happens and if the Surety Co. cares that the Bid was won on a bond they never authorized. At least not yet. They may authorize it now, but I still feel my Boss put me in a very weird situation and then lied to me.
BADTROUT
Guru
My best advice would be to simply call in sick for the rest of your time. One thing to consider is that by you documenting via this forum and anywhere else you have asked the questions, you may actually be complicit since you are and have been getting professional advice as to what it seems like from the peanut gallery here... by the sounds of it, they are 100% right. Maybe nothing illegal, maybe there is, it sure sounds at very least unethical. I would consider contacting the division of insurance if all of what you have detailed is true, or the criminal fraud division of your state Atty Generals office.
I did based on evidence that presented itself to me, and the gentleman in question is serving 13 years in federal prison. You can anonymously report, but I would consider using your name to elevate it because big name or not, if you are part of the organization, and you have knowledge, you may not have intended to participate, and technically you maybe haven't done anything wrong... or have you... Check out Jerome Mayne's story...
Your doing the right thing, by suspecting, asking, finding out for yourself directly from the carriers, but now that you know... Don't stop, end it, report it, and at least rest easy knowing you didn't lay down and allow someone else to fall prey to his behavior, who may not be as sharp as you.
Good luck! Don't worry, you WILL get another job, the more well known he is, the more likely his competition is to be interested in hiring you.
I did based on evidence that presented itself to me, and the gentleman in question is serving 13 years in federal prison. You can anonymously report, but I would consider using your name to elevate it because big name or not, if you are part of the organization, and you have knowledge, you may not have intended to participate, and technically you maybe haven't done anything wrong... or have you... Check out Jerome Mayne's story...
Your doing the right thing, by suspecting, asking, finding out for yourself directly from the carriers, but now that you know... Don't stop, end it, report it, and at least rest easy knowing you didn't lay down and allow someone else to fall prey to his behavior, who may not be as sharp as you.
Good luck! Don't worry, you WILL get another job, the more well known he is, the more likely his competition is to be interested in hiring you.
I agree with the others, not making a move now has the chance to cost you a lot more than just your good name at this point.
Do you have more references you could write than just his name? I would use those when you are looking for a job. If you don't get away from what's wrong early on. You'll find yourself justifying it in your own head eventually.
Do you have more references you could write than just his name? I would use those when you are looking for a job. If you don't get away from what's wrong early on. You'll find yourself justifying it in your own head eventually.
InsuranceNerd
Expert
- 23
Any update to this situation? Hope you got out of there.
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