At the last agency where I worked, I was hurt on the job and the employer had the WC carrier send me a letter telling me that the employer had “decided to deny worker’s compensation benefits” – payment of a hospital emergency dept. bill!
Since when can an employer decide not to pay your medical bills when you are injured on the job in front of witnesses!
After the boss admitted that very same day, “That’s work comp.”
Between my experiences with dodgy employers and hearing about agents stealing premiums and issuing phoney binders and certs., I gotta wonder if it’s time to change careers after 30+ years in the business.
But I won’t. There’re too many fantastic, hardworking, scrupulous people that do the right thing by the insureds, each and every minute of each and every day.
I was under the impression that if a policy is bound but then funds are never received by the carrier then they will cancel for non-payment, with a copy of this document going directly to the insured as well as a copy to the broker. So that the insured would know in fairly short notice, or whatever the appropriate state dictates.
They will never know if you never bound the business to begin with. He collected and gave out bogus certs to the insureds. Company didn’t know and the supposed insured didn’t know. Unless of course, a claim popped up…
I worked for an employer that has been reported to the Illinois Insurance Department on numerous occasions for similiar activities and to date he is still in business. Go figure!
Brokers can request all mailings be sent to them. I have done that myself. I looked over the paperwork and then forwarded it to the insured. This is one of the biggest abuses I have seen in quite awhile. One of the town banks is suing this agency for over one million dollars. Factor in the premiums and what was going on…gambling problems?
Whether the policy can be cancelled for nonpay even if the company knows of the policy is a trickier question than you present as well. If the agent is acting as an MGA/Agent for the company (not as a broker), payment to the agent can be deemed as payment to the company. So, the company doesn’t have the legal remedy of cancellation even if they haven’t been paid. Payment to the MGA = payment to the company.
The IL Commissioner of Insurance is a joke. Like anything political in this state. All corrupt, all cash, all deals, and not substance, ethics, or honesty. Kind of like Obama’s Cabinet.
How is this agency still in business? And there have been many other examples over the years.
The policies must have been issued, otherwise the companies wouldnt have issued a promissary note to him, with premium owed to the company which I assume sparked the states interest in the first place… What a mess
I would just like the commission on accounts that are that big. No need to be greedy.
At the last agency where I worked, I was hurt on the job and the employer had the WC carrier send me a letter telling me that the employer had “decided to deny worker’s compensation benefits” – payment of a hospital emergency dept. bill!
Since when can an employer decide not to pay your medical bills when you are injured on the job in front of witnesses!
After the boss admitted that very same day, “That’s work comp.”
Between my experiences with dodgy employers and hearing about agents stealing premiums and issuing phoney binders and certs., I gotta wonder if it’s time to change careers after 30+ years in the business.
But I won’t. There’re too many fantastic, hardworking, scrupulous people that do the right thing by the insureds, each and every minute of each and every day.
I was under the impression that if a policy is bound but then funds are never received by the carrier then they will cancel for non-payment, with a copy of this document going directly to the insured as well as a copy to the broker. So that the insured would know in fairly short notice, or whatever the appropriate state dictates.
They will never know if you never bound the business to begin with. He collected and gave out bogus certs to the insureds. Company didn’t know and the supposed insured didn’t know. Unless of course, a claim popped up…
D, gottcha, thanks
I worked for an employer that has been reported to the Illinois Insurance Department on numerous occasions for similiar activities and to date he is still in business. Go figure!
Brokers can request all mailings be sent to them. I have done that myself. I looked over the paperwork and then forwarded it to the insured. This is one of the biggest abuses I have seen in quite awhile. One of the town banks is suing this agency for over one million dollars. Factor in the premiums and what was going on…gambling problems?
Whether the policy can be cancelled for nonpay even if the company knows of the policy is a trickier question than you present as well. If the agent is acting as an MGA/Agent for the company (not as a broker), payment to the agent can be deemed as payment to the company. So, the company doesn’t have the legal remedy of cancellation even if they haven’t been paid. Payment to the MGA = payment to the company.
The IL Commissioner of Insurance is a joke. Like anything political in this state. All corrupt, all cash, all deals, and not substance, ethics, or honesty. Kind of like Obama’s Cabinet.
How is this agency still in business? And there have been many other examples over the years.
The policies must have been issued, otherwise the companies wouldnt have issued a promissary note to him, with premium owed to the company which I assume sparked the states interest in the first place… What a mess