Tell me this is illegal..

[Heather]

long term customer wrecks her car, she tells me this charity is donating her a car. Then she told me they were getting her 6 months free car insurance. I am thinking great they will pay her bill. No no no they do business with this big agency, who re wrote her a new progressive policy and paid it in full for 6 months, telling her its a tax write off for their agency and a way to get new clients. Yes charity is a tax write off but you can't pay premiums for someone and collect commission - the whole thing sounds illegal. Its not rebating but it can't be legal and I don't think progressive would like this. I know I sure don't like losing my client after all these years either.

All she had to do was go in and sign paperwork at their office. They are also telling her that her daughter must cancel her progressive policy because you can't have your mom listed on your policy if she drives your car now and then if your mom has her own progressive policy.

 

[adjusterjack]

you can't pay premiums for someone and collect commission - the whole thing sounds illegal.

I don't think it's illegal. I took a quick look through the NY insurance licensing statute regarding agents and brokers and found nothing prohibiting the practice.

You're welcome to spend more time on a thorough review if you like:

2016 New York Laws :: ISC - Insurance :: Article 21 - (Insurance) AGENTS, BROKERS, ADJUSTERS, CONSULTANTS AND INTERMEDIARIES

I don't think progressive would like this

As long as the risk was properly underwritten and the premium paid I can't imagine why Progressive would care.

I sure don't like losing my client after all these years either.

Then keep in touch with your client and try to win her back at the end of six months.

They are also telling her that her daughter must cancel her progressive policy because you can't have your mom listed on your policy if she drives your car now and then if your mom has her own progressive policy.

Now that part I don't agree with. Daughter should never cancel her own policy. Period. Especially just on the word of the agent. If Progressive's underwriters want some action taken on the daughter's policy, proper notice in writing needs to come from a Progressive underwriter.

Better caution the daughter on that and have her leave her policy alone.

 

[indienoise]

I know a carriers guidelines can vary by state. But I had a rather dumb captive rewrite one of my progressive clients, who had a $1000 eft transaction charged to them a couple months later because progressive doesn't allow prior insurance discount when it's rewritten this way. Needless to say, that client is back with me now, with a different (and better!) carrier.

 

[adjusterjack]

Good argument for NEVER doing EFTs.

 

[indienoise]

EFT clients are typically better than direct bill. BUT, it's a great argument for knowing your carrier guidelines and actually helping a new client, not just trying to sell them.

 

[adjusterjack]

EFT clients are typically better than direct bill.

Maybe for the agent but my comment was aimed at the danger of authorizing a third party to dip into your bank account whenever they please. As a consumer I don't do it and recommend that people keep strict control of their bank accounts.

 

[VolAgent]

Maybe for the agent but my comment was aimed at the danger of authorizing a third party to dip into your bank account whenever they please. As a consumer I don't do it and recommend that people keep strict control of their bank accounts.

Do you ever use checks?