I’m thinking I’ve read somewhere that rebating is legal in California. I think I started looking into it after watching Progressive commercials with the dude handing out money to people at a gas station.
Who would’ve thought a million in premium wouldn’t be paid? But no, it’s almost standard practice these days for a legitimate agency to loan a little dough at binding, so I feel for these guys. Glad they got theirs.
I thought “loaning” money from an agent (or agency) to the insured would be considered some sort of rebating which is unethical and illegal where I’m licensed. If an agency has to loan money to the client just to bind coverage then they are asking for trouble anyway. I do realize they beat to a different drum in CA in many ways… At least they have not legalized pot yet… Loaning money to a client to bind coverage would have made more sense if they were high!
This type of relationship has gone on for many years”under the table”.Only when this blows up and goes to court is it big news.There should be introduced some language in the California Insurance code to prohibit this with penalties.This smells of REBATING!
This type of business and relationships have been going on for a long time.Only when there is a lawsuit is this big news.This type of ‘under the table’business is unethical.There should be strong language in the Insurabce Code with penalties to prohibit this type of insurance transaction.
Carrying a client on your account current is not considered rebating, if that’s what was done here. And I don’t see how a loan is rebating if you are expecting payment back in full. Some broker own premium finance companies to do this very thing.
Don’t you think the agency should have been able to see problems ahead when they had to loan the client their down payment?
I’m thinking I’ve read somewhere that rebating is legal in California. I think I started looking into it after watching Progressive commercials with the dude handing out money to people at a gas station.
Second wvagt’s comment.
Who would’ve thought a million in premium wouldn’t be paid? But no, it’s almost standard practice these days for a legitimate agency to loan a little dough at binding, so I feel for these guys. Glad they got theirs.
Look for the other Legal cases involving HCG insurance in this website, you will get the idea with who you are dealing
I thought “loaning” money from an agent (or agency) to the insured would be considered some sort of rebating which is unethical and illegal where I’m licensed. If an agency has to loan money to the client just to bind coverage then they are asking for trouble anyway. I do realize they beat to a different drum in CA in many ways… At least they have not legalized pot yet… Loaning money to a client to bind coverage would have made more sense if they were high!
This type of relationship has gone on for many years”under the table”.Only when this blows up and goes to court is it big news.There should be introduced some language in the California Insurance code to prohibit this with penalties.This smells of REBATING!
This type of business and relationships have been going on for a long time.Only when there is a lawsuit is this big news.This type of ‘under the table’business is unethical.There should be strong language in the Insurabce Code with penalties to prohibit this type of insurance transaction.
Carrying a client on your account current is not considered rebating, if that’s what was done here. And I don’t see how a loan is rebating if you are expecting payment back in full. Some broker own premium finance companies to do this very thing.