Who Is Mr Hunter - Who Is Cfa

JSJAG · Post by **JSJAG** » Thu Dec 16, 2004 3:38 pm

I've started my own investigation into the Confederation of America, a 501 c(3) organization. At the beginning of my search I found that there are many, many nonprofit groups that seem to be structured to benefit a narrow benefactor. For a long time I've been aware of Mr. Hunter's name and he seems to be a self appointed gadfly to the insurance industry. What I find troubling is that I am not sure if the CFA is in business to benefit a wide range of USA consumers or are they in business to use their name as a bully pulpit?

In one of Mr. Hunter's papers I read about his problem with the commission structure that insurance producers make? Mr. Hunter now wants what the producer makes be known and shown to all clients. Ok that if he feels that is fair then it is also fair to request the form 990 and schedule A to see what type of money the lead folks in the "nonprofit" CFA are making each year. Is there anyone that has ever investigated the investigators? Is there anyone that has ever questioned the position of 501 C(3) groups.

I was reading Mr. Hunter's December 4, 2004 testimony to the NAIC Mr. Hunter states, Quote: " Insurers provide agents with a kick back at the end of the year if clients file a low level of claims" end quote.

The first thing Mr. Hunter does in his testimony is to confuse by substituting agents for agency. It bothers me to consider that this man also stands before subcommittees in Washington and does he offer his shading of the facts. Mr. Hunter knows that it is the agency that may get the bonus (he calls it a kick back). To many of us out here that broker through agencies we never, ever, never have seen a cent of that bonus. Mr. Hunter is an ex-commissioner and know very well that the agency receives the bonus.

Mr. Hunter goes on to say, quote: "The lower the agents loss ratio, the higher the bonus the agent receives. This is an obvious incentive for an agent to delay filing a legitimate claim or improperly advise a consumer not to file it." end quote. Who in their right mind would not file a claim for their client. For Mr. Hunter to say such a thing show to me that he doesn't hold insurance people very high on his list.

In other writings dealing with agent commissions Mr. Hunter states that commissions paid to brokers and agents ranged from 0 to 30 percent. He shows USAA having a 0 percent commission and Foremost having a 26 percent commission. I'm not sure where his 30 percent is hiding? Again he tries to make it sound like an agent or broker will get up to 30 percent. I've never, ever received 30 percent...I've never received a full 15 percent. There is always a split. Does Mr. Hunter try to show that a 0 percent commission is to be a socially acceptable goal?

It is from his testimony and writings that lead me to wonder if Mr. Hunter and or CFA doesn't have an appointed agenda before their investigations.

Here is a link that refutes some of CFA's stance on Prop 103....
<a href='http://www.namic.org/pdf/040921AppelFinalRpt.pdf' target='_blank'>http://www.namic.org/pdf/040921AppelFinalRpt.pdf</a>

cynsationalinswoman · Sat Dec 18, 2004 12:42 am

Hmmmm, this is the first I have heard of Mr. Hunter. I will definitely follow the link and read up on him. But he is full of bs to begin with, the incentive offered to agencies, which is known as an "override", not a "kick back" is to place GOOD business which has superior management and procedures which prevent losses, not to suppress claims if they should occur.

Wonder what political office he has his eyes set on? I have written a few non-profits, for the most part they people like you & I who work hard to do the right thing for whatever cause they support. But every industry has their share of leeches.

And yes, it is required that insurance agents fully disclose to the client their commission percentage and any and all taxes, fees, broker fees, etc. that are being charged. Hey, that is how we get paid, nothing to be ashamed of. They are trying to make an issue which says we hide our commissions and are making a killing on broker fees.

Why is insurance the one industry that the consumers think should be a free service?

Rob · Post by **Rob** » Sat Dec 18, 2004 3:14 am

</div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (cynsationalinswoman @ Dec 18 2004, 01:42 AM)</td></tr><tr><td id='QUOTE'> Hmmmm, this is the first I have heard of Mr. Hunter. I will definitely follow the link and read up on him. But he is full of bs to begin with, the incentive offered to agencies, which is known as an "override", not a "kick back" is to place GOOD business which has superior management and procedures which prevent losses, not to suppress claims if they should occur.

Wonder what political office he has his eyes set on? I have written a few non-profits, for the most part they people like you & I who work hard to do the right thing for whatever cause they support. But every industry has their share of leeches.

And yes, it is required that insurance agents fully disclose to the client their commission percentage and any and all taxes, fees, broker fees, etc. that are being charged. Hey, that is how we get paid, nothing to be ashamed of. They are trying to make an issue which says we hide our commissions and are making a killing on broker fees.

Why is insurance the one industry that the consumers think should be a free service? [/quote]
Cynsationalinswoman, I think we may have found something we agree on!

Consumers expect to pay other professionals such as attorneys, accountants, business brokers etc, yet we basically get paid on "contingency". After all the work we put into a prospect, if the customer doesn't buy, we don't get paid. Not like the attorney or accountant who just sends you a bill for the phone counsel.

JSJAG · Post by **JSJAG** » Sat Dec 18, 2004 11:51 am

Just looking at the attorney I use for real estate and I get a $150 invoice from him. <_<

cynsationalinswoman · Sat Dec 18, 2004 12:08 pm

Rob, while our first meeting on this forum may have caused us to butt heads, I believe we can probably agree on many things. I see you are in Northern CA, I am in So Cal, (YUCK!!!).

The issue on commissions, broker fees, overrides and every move made by an agent in So Cal is under the microscope right now. And due to the blood sucking attorneys, we are forced to incorporate yet more paper into the process. Used to be my time was spent preparing the producer with full explanation of coverage, recommendations on additional lob etc. Now it seems we spend more time preparing to defend pricing.

I've done my time out in front of the client also, whether you are a producer or admin staff, it ain't easy being an insurance professional.

JSJAG · Post by **JSJAG** » Sat Dec 18, 2004 12:13 pm

Actually for a long time I've know of Mr. Hunters work but I never investigated CFA's mission statement. I used the headline to get others to take a look at who he is and what he stands for. There are times that he says things that make sense but he seems to be one of those people that are so consumer oriented that everything should be free (or almost). If commissions are lowered would Mr. Hunter be opposed to charging for Certs of Insurance? I have a real estate appraiser that requests about one cert a week.

About disclosure of commissions. In my State the only time I ever see any commissions, taxes and fees disclosed is in the Surplus lines market.

I became curious when I heard CFA mentioned on the Clark Howard radio show. Clark Howard promotes the be a cheap as you can be method of living. I think he once said that for his wedding day he rented an Escort or some other small car. Funny though, I bet Clark Howard makes a handsome sum from the advertisers on his show. One of those funny things in life, of the how to live the cheapest preachers is that they always seem to be making some going money. It is ok for their radio ad rates to be high but everyone else must bow down and lower their rates.

cynsationalinswoman · Post by **cynsationalinswoman** » Sat Dec 18, 2004 1:53 pm

Here is a link to a pretty decent article, and there are quite a few good topics there at the moment.

<a href='http://www.agentandbroker.com/default.cfm?page=382' target='_blank'>http://www.agentandbroker.com/default.cfm?page=382</a>

I particularly like the wording that all we in the insurance industry would like this Christmas is a little common sense. Guess we are asking the wrong people.