Farmers has no “exclusive” agents in Louisiana. They are represented by independents there. This should not affect any agent adversly and is probably a good move for both Farmers and the independent agents who are servicing them.
I learn something new every day. Didn’t know they didn’t have captive agents over there. They are thicker than flies in most other states. It is interesting that Zurich, the parent apparently does business over there and sponsors the Zurich Classic PGA event in New Orleans every year. I really don’t blame them for leaving. Louisiana with its Napoleonic laws is tough to do business in and lawsuits abound with the most minor auto accident. Lawyers are called often before the Police arrive at the scene.
Louisiana does not use Napoleonic law anymore, Agent. And, writing insurance there can be perfectly profitable if you limit your writings in the New Orleans area.
How does this work with Louisiana law that forbids non-renewal of a HO policy once it has been in effect 3 or more years? According to all the sources I can find, such policies can be terminated ONLY for non-payment, material misrepresentation, 3 or more non-weather related claims in 3 years or, by the company proving that continuation of the policy threatens the solvency of the company. So…do they plan to ignore the law or is the Dept of Insurance exempting them from it…or what?
I suppose they can offer the customers the Foremost HO at a higher premium and maybe that will satisfy the requirement. 21st Century will be glad to take on the Auto if they can understand all that Cajun lingo on the phone.
Another reason why State Farm and Allstate rule the captive market, FIG has no appetite for risk. they have lost a third of their market share in the last 10 years in my state.
It might not be a good thing to be a Farmers agent in Louisiana, just sayin…
Farmers has no “exclusive” agents in Louisiana. They are represented by independents there. This should not affect any agent adversly and is probably a good move for both Farmers and the independent agents who are servicing them.
I learn something new every day. Didn’t know they didn’t have captive agents over there. They are thicker than flies in most other states. It is interesting that Zurich, the parent apparently does business over there and sponsors the Zurich Classic PGA event in New Orleans every year. I really don’t blame them for leaving. Louisiana with its Napoleonic laws is tough to do business in and lawsuits abound with the most minor auto accident. Lawyers are called often before the Police arrive at the scene.
Louisiana does not use Napoleonic law anymore, Agent. And, writing insurance there can be perfectly profitable if you limit your writings in the New Orleans area.
I don’t think it is a good thing to be a Farmers agent in ANY state!!
When a company pulls out its a chance to offer the book to your other companies and get extra commission or up front $$ to roll.
JW, true in practice, but I suspect not on HO business in Louisiana if it is below Alexandria.
I don’t blame them, Louisiana is not a place where you want to do business.
How does this work with Louisiana law that forbids non-renewal of a HO policy once it has been in effect 3 or more years? According to all the sources I can find, such policies can be terminated ONLY for non-payment, material misrepresentation, 3 or more non-weather related claims in 3 years or, by the company proving that continuation of the policy threatens the solvency of the company. So…do they plan to ignore the law or is the Dept of Insurance exempting them from it…or what?
I suppose they can offer the customers the Foremost HO at a higher premium and maybe that will satisfy the requirement. 21st Century will be glad to take on the Auto if they can understand all that Cajun lingo on the phone.
This applies to selective actions. If the non-renewal is for an entire line of business and it’s statewide, the 3 year law does not apply.
Another reason why State Farm and Allstate rule the captive market, FIG has no appetite for risk. they have lost a third of their market share in the last 10 years in my state.