Would someone please explain to me how these “low-lifes” think that they can get away with something like this????? I worked for a captive agent at the beginning of my career that did this same thing and I called him on it….I just don’t get it!!
This is a crime that is deep rooted in the broker/agency industry since the first brokers and agents were formed. You can increase the penalties and jail time, you can have all the ethic’s CE courses you want, but a thief is a thief is a thief. The only way to fix this is that ALL premiums, regardless if they are brokers or agents go to the insurance company directly and the insurance company reimburses the agent or broker OR, the client pays only the fee or brokerage directly to the agent/broker. It’s simple but many inurers don’t want the accounting expense and unless the States make it law, it ain’t happening.
Rocket88, why in the world would you want everything converted to direct bill? That makes no sense. The majority of agents/brokers are highly reputable; they are not thieves. The laws that are in place do work and thieves are caught and punished.
I would strongly suggest that wholesalers practice more diligence in the event they suspect something amiss with an agent/broker. The telltale signs were there with Morry Hoffman as they were with others that have been found guilty of stealing insurance premiums. Premiums were continually past due, finance companies came and went, large books of business were moved from one reputable wholesaler to another. Those things, especially the turnover of finance companies and moving large books of business are huge red flags.
IMHO, before you accept a large book of business from a new agent, do your homework before sending them a broker agreement. If you suspect you’re working with a bad agent, place them on a ‘payment diet’. Require the MEP prior to binding, give them short payment terms for the balance due, insist on using your own finance company, not theirs, and remit all (finance) return premiums directly to the finance company. If they balk at those terms, you have just received another red flag and shouldn’t do any further business with them.
Let’s not commit obamacare on insurance accounting. Let’s just be more proactive and put those losers down more quickly.
Would someone please explain to me how these “low-lifes” think that they can get away with something like this????? I worked for a captive agent at the beginning of my career that did this same thing and I called him on it….I just don’t get it!!
Isn’t he a Nationwide agent?
I also don’t get it…..how do these guys think they can do this and not eventually get caught? The sheer stupidity, nevermind it being wrong.
This is a crime that is deep rooted in the broker/agency industry since the first brokers and agents were formed. You can increase the penalties and jail time, you can have all the ethic’s CE courses you want, but a thief is a thief is a thief. The only way to fix this is that ALL premiums, regardless if they are brokers or agents go to the insurance company directly and the insurance company reimburses the agent or broker OR, the client pays only the fee or brokerage directly to the agent/broker. It’s simple but many inurers don’t want the accounting expense and unless the States make it law, it ain’t happening.
Rocket88, why in the world would you want everything converted to direct bill? That makes no sense. The majority of agents/brokers are highly reputable; they are not thieves. The laws that are in place do work and thieves are caught and punished.
I would strongly suggest that wholesalers practice more diligence in the event they suspect something amiss with an agent/broker. The telltale signs were there with Morry Hoffman as they were with others that have been found guilty of stealing insurance premiums. Premiums were continually past due, finance companies came and went, large books of business were moved from one reputable wholesaler to another. Those things, especially the turnover of finance companies and moving large books of business are huge red flags.
IMHO, before you accept a large book of business from a new agent, do your homework before sending them a broker agreement. If you suspect you’re working with a bad agent, place them on a ‘payment diet’. Require the MEP prior to binding, give them short payment terms for the balance due, insist on using your own finance company, not theirs, and remit all (finance) return premiums directly to the finance company. If they balk at those terms, you have just received another red flag and shouldn’t do any further business with them.
Let’s not commit obamacare on insurance accounting. Let’s just be more proactive and put those losers down more quickly.
Gee….. Brian….. we only know about the ones that get caugh not the ones that get away with it>>