Posted On: June 1, 2006, 8:13 pm CDT

Posted By: Reality Check

As far as the customer signing the application, I agree it's their fault. However, the agent should be an agent and not misinform or fail to inform them of the coverage gaps from the prior policy. And with the Department of Ignorance in Sacramento, an agent should offer all of the rates to his/her client and let them choose the company. But at the same time, the client usually wants price. If the playing field is level, Mercury wins the majority of the time.

Actually, we represent many good companies and Mercury's underwriting has proven time and time again to be sound. I don't always agree with it, but underwriting based on lifestyle is accurate better than 80% of the time. We apply the Mercury methods to all of our carriers and the client wins with better rates and policies that are valid(what a concept)! What's funny is that our other carriers are benefiting from this practice by our book being more profitable.

Most agents don't like the work Mercury has them do. They just want to help(actually hurt) the next customer that walks through or calls. They just like the money and most mills(Geico, 21st Century, AAA, Farmers, Etc.) don't care about the client, they only care about the new customer and policy count. Most brokers could care less how long a policy stays on the books since the Fee is fully earned and they'll get another one when they rewrite them.