Almost a year ago, we ran an article called “13 Caveats in Using E&S Markets.” While there are issues that agents should be aware of when using E&S markets, in an increasingly hard market, we think it’s time we pointed out the many pluses that E&S markets bring to the table. To do that, we…
You’re a small agency with a lot of big business connections, but you don’t have the markets or the staff to sell and service these types of major commercial accounts. One possibility is to broker them through a larger agency. While there are a number of contractual, E&O, and other issues (and pitfalls) to consider,…
You have an insured who has declared bankruptcy. How does this affect any premiums the insured owes? How does it affect any return premiums due the insured? How does bankruptcy affect cancellation due to nonpayment of premium? Can the insurer cancel on the basis that the bankruptcy itself represents an increase in risk? While we…
What is Benchmarking? It is a management tool in which an independent agent can analyze the agency’s financial and operating results against other agencies within its own peer group. This article explores a FREE service where you can add your own data and see how it compared to your peers.
Just because an independent agency places more business with one company rather than another does not mean anything nefarious is occurring such as unethically steering business. Even if the insurance company benefiting the most pays the most, this does not mean anyone is doing anything wrong. But to people willing to jump to conclusions, it…
In the midst of the credit crisis and economic turmoil, some very important accounting standards are coming to the forefront. Accounting is almost as boring as IT for most agency principals, but it is worth paying attention because the impact on this industry and your opportunities are significant.
After years of preaching to agencies that they should not call customers whose direct bill policies are in a “pending cancellation” state due to non-payment of premium, at least one insurer is suggesting that agents make a “courtesy call” on most clients whose direct bill policies are unpaid past their due dates. Could this present…
Some independent contractors sell L&H insurance and split commissions with a bank-owned agency. The agency does not get a copy of any of the documentation, from application to policy. Servicing is done solely by the insurer. Because of the way business is done, there is nothing that is recorded on the agency management system (no…
An insured received her commercial property renewal and paid it in full. She then received a cancellation notice. According to the insurer, they failed to bill the insured three years ago for a policy and wanted the premium for that term. She refused to pay it so they are cancelling the current policy for nonpayment.…
