Dealing with a possibly unethical customer

[Rob]

I think the answer is obvious but I am curious if others here would handle it differently.

Scenario: A customer had E&O through my agency back in 2008. Did not renew due to price. Yesterday I get a fax from a state agency who he has a contract with asking to have something changed on his certificate of insurance. I advise we did not issue a cert and the copy they provided appeared similar to the one issued in 2008 but was altered to show current dates (with other errors). I fax letter to insured advising him that IF it was in fact he who presented an altered certificate, to cease and desist from presenting certificates of insurance with my agency name and signature. Today, I receive a phone call from his employee who said the owner was baffled but just wanted to get the right, legitimate insurance (but only what the state agency needs which appears to be just GL). You would think they would be embarrassed and would call another agency for coverage but no he calls me.

The response that runs through my head is "I'm sorry but I don't feel comfortable having a customer like this". Another way to shoo him away may be to say "I won't write the GL without the E&O". Then again, could there possibly be a reasonable explanation (other than "I don't know what happened")?

Thoughts?

[LadyBroker]

Hmmm...well, it's one of two things --someone in the insured's office didn't notice that the E&O didn't renew with you, and thought it was okay to amend the cert....or someone in the insured's office is a big liar.

Since they did call you to see if you could help them place coverage again, I am thinking maybe it was an honest error. But I would go with what my gut tells me. You have a pretty good radar for that kind of thing.

[Big Dog]

If you have any documentation that this former insured chose not to renew (i.e. a letter from him, copy of a letter you sent "confirming our conversation", etc.), then you may want to provide this documentation to them. If it were me (and fortunately, I've escaped the insurance agency/brokerage/carrier side of the business), I would not feel comfortable re-writing his E&O insurance, given his past record. This one "smells".

[Rob]

Hmmm...well, it's one of two things --someone in the insured's office didn't notice that the E&O didn't renew with you, and thought it was okay to amend the cert....or someone in the insured's office is a big liar.

Since they did call you to see if you could help them place coverage again, I am thinking maybe it was an honest error. But I would go with what my gut tells me. You have a pretty good radar for that kind of thing.

Well the thing is that the coverage boxes checked do not match the coverage that was previously provided. They hand checked GL, Excess, and Workers comp and input a recent effective date. The policy numbers were blank. A clause adding an additional insured was input in the comments box. I talked to the State agency and they thought something was up too. I asked how they got this cert and they said the insured had mailed it to them as part of their application. Finally, they don't even want E&O now, they just want what this State agency wants (GL).

Not to mention that there are multiple GL exposures as well, i.e. two separate operations. I told them that I didn't feel comfortable writing this given the fact that the fraudulent cert came from their office because I thought it was a serious breach of trust that I just couldn't reconcile in my mind.

[Rob]

If you have any documentation that this former insured chose not to renew (i.e. a letter from him, copy of a letter you sent "confirming our conversation", etc.), then you may want to provide this documentation to them. If it were me (and fortunately, I've escaped the insurance agency/brokerage/carrier side of the business), I would not feel comfortable re-writing his E&O insurance, given his past record. This one "smells".

Yes I have documentation to this effect. However, he doesn't even want E&O now, he just wants what is required by a contract (GL). You're right, it "smells" bad and I chose to pass! My guess is that is what most people here would have done.

[Phils]

You get my vote for "doing the right thing".

If they'd forge the cert to try and fool someone else, they'd likely have no problem "stretching the truth" to collect on a claim. I don't think ANY employee would do such a thing without the knowledge or instruction from the owner.

Phil

[Rob]

You get my vote for "doing the right thing".

If they'd forge the cert to try and fool someone else, they'd likely have no problem "stretching the truth" to collect on a claim. I don't think ANY employee would do such a thing without the knowledge or instruction from the owner.

Phil

You got it, or even stretching the truth if it ever came down to a he said/she said type of thing where I am the he and he is the she!

[FFA]

If it smells like a rat, it is a rat.
Kick them to the curb!

[Shagster12]

Rob,
In this economy and market the last thing any broker wants to do is walk away from business.
So it is with great surprise I read that you didn't just take him at his word and jump through hoops to get more business out of him....... SARCASM INTENDED!
I say way to go, and I agree that it's highly unlikely that "an employee" did this without direct knowledge and instruction from the owner!
We all have clients who bend the truth and omit facts and underestimate values/receipts/payrolls to get a better rate. We have them and we know this and we do the best we can to try to help keep them honest for their own best interest. But when it's so obvious that they've crossed the line and wouldn't hesitate to take us over the line with them, then send them down the road to your less than ethical competitior and let them both go down together!
WTG.
Shagster

[d's insurance store]

You have every right to feel outraged...and violated...and whatever else, and you're entitled to all of the empathy and sympathy here, but this kind of stuff goes on daily, and the longer you're in the business and the more clients you acquire, the odds go up daily that you'll bump into people who act is this manner.

I insured a sole proprietor window washer for GL for one year...he didn't renew due to rate...and then three years later I received a phone call from his parents. The insured had passed away and the parents were looking to cancel the policy and obtain a refund. They had 'proof' of coverage as one of my certs that had been altered like yours had, with current effective dates. I referred them to the Department of Insurance to 'obtain the proper refund amount'.

I've also had cancelled insureds who've tried to file claims or present proof of insurance with very outdated personal auto ID cards. In those instances, I'm subjected to the indignity of a taped phone conversation with either a claims rep or supervisor, asking me for my own practices regarding non pay cancellations and it's a hassle, but generally when I receive the denial of coverage letter, I feel that vengence is mine.

It's hard to practice honestly in a world populated by dishonest people, and on some days, it seems that's the segment of the population I keep dealing with.