Former Southern California Auto Club Agent Sues Insurer for ‘Illegal Practice’

By Don Jergler | October 25, 2012

  • October 25, 2012 at 9:28 pm
    Justino says:
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    Terrible company, just another example of taking money from their workers so the exec’s can line their pockets.

  • October 26, 2012 at 1:31 pm
    Christopher says:
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    I worked there for 12 years (leaving in 2005) and this practice was rampant then. Not only were you paid substantially less, but you were discouraged by local management to write the business. If you did write the business you had to explain why you wrote the account. In addition if you did write the business you were encouraged to request payment in full in lieu of payment options. A horrible way of doing business.

    • October 29, 2012 at 2:00 pm
      yoyowordup says:
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      You worked for a company that paid substantially less the the marketplace? FOR 12 YEARS?

      Your clients were encouraged to pay in full rather than installments? Oh the humanity.

      • February 21, 2015 at 8:09 pm
        gsuburban says:
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        Auto Club doesn’t pay like they used to. Agents get paid to write new policies only. They are asked to service all policies, answer questions, add a car or a driver etc., but don’t get paid for that service time out of their day. What Auto Club is going to end up being is a 20th Century/21 Century pay plan. No commissions at all and hourly wages since they really think that their name and reputation is the real reason why folks look to them for insurance. Not true, they all look because they are browsing for ways to save. No hourly employee is going to give a crap.

  • October 26, 2012 at 5:41 pm
    Insurance Marketer says:
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    Neither the article, nor the comments convince me that Auto Club is in the wrong. Why wouldn’t they want insureds with a proven history of good driving and timely payments? Offering less commission for higher risk taking makes sense. As an agent, make up for it in volume if those are the only clients you can get.

  • October 26, 2012 at 5:47 pm
    Insurance Marketer says:
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    Neither the article, nor the previous comments convince me that the company is in the wrong. Why wouldn’t you encourage business that is lower risk through higher commissions?

    Building up a clientele so that you don’t have to take on low pay commissions = $250K a year

    Suing your employer cuz you can’t hack it = Priceless

  • October 26, 2012 at 8:25 pm
    renoscs says:
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    Harvey Rosenfraud again?? Can’t this guy find a real job?

  • October 26, 2012 at 8:50 pm
    renoscs says:
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    Wait a minute!! Since when is it unlawful for an Insurance Company to decide how much they want to pay in commissions? Isn’t it their money? What about free enterprise? Does Harvey now want to control how an Insurance Company spends it money and control commissions? Does he think that the USA is North Korea? What about all the money Harvey has made as a result of Prop. 103? This the real crime!! Harvey needs to go to work for an Insurance Company and an Independent Insurance Agent to find out how the world of insurance actually works. Better yet, he should form his own Insurance Company and do all the crazy things he thinks are right. He would be broke in less than 3 years!!

  • February 26, 2013 at 10:59 pm
    ZED says:
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    Fact AAA charges 18% interest if you pay in installments. It is in writing but most people have no idea. Agents filed a lawsuit against AAA and are NO LONGER PAID RENEWALS which MEANS ALL AGENT which sold you the policy of its merits will NOT service it past the SECOND year UNLESS you bring it up during the sale then he will just promise and not deliver…COMMON PRACTICE !!!!! FACTS !!!!

  • February 21, 2015 at 8:03 pm
    gsuburban says:
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    Jeff Spring should retract his statement. They were wrong and they paid tens of millions to settle. OH, and the plaintiff Jill Rogers had a document from Auto Club provided to sales agents that clearly showed a box to check if they had prior insurance or not. No one in the public gets and satisfaction from these kinds of lawsuits when they end since the results aren’t published and the fines and/or settlements

    aren’t published. The insurance commissioner should require this information to be published on all of these kind of suits. Why? They paid the fines and settlements then continue to do it again. Published past actions which show results of “unfounded” claims need to make a point in the future since insurance companies have lots of disposable revenue unlike the small business owner who would in mostly likely go out of business after this kind of press. The big ones need to be addressed with heavy press and disclosures when this crap happens. When the factors kick in, those huge cash cow companies, like the auto club, will not only be looking for a way to keep their existing customers but way to find new ones and the same for employees who won’t tolerate those terms in employment duties.



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