Hey, can we get “Level” insurance to cover all the proposals and quotes we provide that we have spent considerable time, effort and sometimes $$ working on, but don’t get awarded the business?
How about double indemnity if we don’t get the business for political reasons (service club friend, brother-in-law, CEO plays golf with the other guy)?
Many years ago, an agent friend approached me with this same problem. What can I do he asked? The solution was simple. I designed a quote agreement that he had the prospect sign. It stated that if the proposal contained a better price for identical coverage, or contained provisions for coverage’s needed but not currently purchased or included coverage’s that could be included at no cost … and the prospect took the proposal to his friend to implement, then the prospect owed him 50% (or some %) of the commission that would have been earned. It also included a provision that the prospect could not issue a “letter of record” to the proposed insurance company, that was binding, without his approval. That is the real problem. Spineless insurance companies that refuse to protect their professional agents.
When he started insisting on this agreement, some prospects refused to sign (no great loss there), but others signed, stating “you must really believe that you are a real professional”. He had to enforce it a couple of times. How? It was a contract!! His efforts were his consideration and the benefits to the prospect was their consideration. He also put a binding arbitration clause in the agreement.
I feel your pain, the struggle is real. I just finished 100+ question application for a roofer that’s new in business. I always tell my clients that my time is my most valuable resource, but they don’t care.
Did you not read my comment? Get it signed before you lift a pencil.
Its a contract for services !!!!!!! That is the real issue with insurance agents. They have created this monster. OH Please dear client, may I please kiss your feet to give you a quote.
Absolute insanity. This risk is the only thing keeping lawyers from bringing nuisance, baseless and frivolous lawsuits, and even that doesn’t work so well anymore considering how excessive judgements and settlements are lately. We should be expanding this risk so lawyers only take on good cases, not eliminating it. Some countries penalize plaintiffs for frivolous suits. Let’s do that instead. I’m friends with lawyers, I have some in my family and sometimes you need one. Some can really be considered true champions of our justice system. But if you need proof that some lawyers already abuse the system look at this: https://www.youtube.com/user/LawsuitReformNY
Amazing, simply amazing. I was wondering what insurance company was stupid enough to offer this cover, and then I saw that it was the product of two Fla. plaintiff attorneys. Even then, there has to be some company’s paper behind it. Agents should find out who and never do business with that carrier again.
All the more reason to adopt employer/employee arbitration personnel policies and put arbitration clauses in every contract.
Can we guess that the two that invented this scheme are members of the Trial Lawyers Association. Who in their right mind would offer this coverage on contingency/nuisance claims? Perhaps AIG?
This could be a growth industry. Just providing the coverage will bring lawsuits out of the woodwork, tie up the courts and slow down legitimate cases. Just think how much money lawyers could make on lawsuits that have no merit. Easier to focus on those than ones that do. So, for the social good, of course, it would have a negative affect, but it would make attorneys more money. Insurance companies, especially those that are started by those they are “protecting” can be rather stupid, but because of adverse selection, the company cannot last long.
It will be a challenge to price this product because recent experience won’t properly predict future claims. Attorneys will have much less incentive to not take a frivolous claim to court given less downside of settling. The other challenge will be in negotiating with attorneys who have this policy. Settlements will be more challenging and it will drive up costs of litigation
The premium is only 7% of the amount covered. That tells me the underwriting will be very tight which, in turn, tells me the winners (cases with merit) will far exceed the losers. This is not likely to be a boon to attorneys. More likely to be a boon to insurers. If anyone knows how to underwrite the risks associated with litigation, it’s insurance companies.
Get a mirror. Look in it and see a commission whore.
When I owned an agency, I NEVER sold on price, or let my producers do that. Coverage and other issues. Example, if a prospect had a debit mod on the auto coverage … why? Many times it was because of small PD claims. How many of you “experts” know that you can put a deductible on the cover? So? Put a $1,000 deductible on that and the carrier has to throw out all claims under that AND reduce all other claims by the deductible.
That, in one case, changed the debit mod from +1.28 to -.80. Immediately. No three year runoff.
Fools. Fools. Fools.
Sell your knowledge …………… not price. What do you think the attorneys, CPA’s do.??
Hey, can we get “Level” insurance to cover all the proposals and quotes we provide that we have spent considerable time, effort and sometimes $$ working on, but don’t get awarded the business?
How about double indemnity if we don’t get the business for political reasons (service club friend, brother-in-law, CEO plays golf with the other guy)?
John:
Many years ago, an agent friend approached me with this same problem. What can I do he asked? The solution was simple. I designed a quote agreement that he had the prospect sign. It stated that if the proposal contained a better price for identical coverage, or contained provisions for coverage’s needed but not currently purchased or included coverage’s that could be included at no cost … and the prospect took the proposal to his friend to implement, then the prospect owed him 50% (or some %) of the commission that would have been earned. It also included a provision that the prospect could not issue a “letter of record” to the proposed insurance company, that was binding, without his approval. That is the real problem. Spineless insurance companies that refuse to protect their professional agents.
When he started insisting on this agreement, some prospects refused to sign (no great loss there), but others signed, stating “you must really believe that you are a real professional”. He had to enforce it a couple of times. How? It was a contract!! His efforts were his consideration and the benefits to the prospect was their consideration. He also put a binding arbitration clause in the agreement.
I feel your pain, the struggle is real. I just finished 100+ question application for a roofer that’s new in business. I always tell my clients that my time is my most valuable resource, but they don’t care.
No, you have failed to convince them that you are worth something. Tell them to go Geico.
Either you believe in what you do, or go flip burgers.
John:
Did you not read my comment? Get it signed before you lift a pencil.
Its a contract for services !!!!!!! That is the real issue with insurance agents. They have created this monster. OH Please dear client, may I please kiss your feet to give you a quote.
Stop It.
Absolute insanity. This risk is the only thing keeping lawyers from bringing nuisance, baseless and frivolous lawsuits, and even that doesn’t work so well anymore considering how excessive judgements and settlements are lately. We should be expanding this risk so lawyers only take on good cases, not eliminating it. Some countries penalize plaintiffs for frivolous suits. Let’s do that instead. I’m friends with lawyers, I have some in my family and sometimes you need one. Some can really be considered true champions of our justice system. But if you need proof that some lawyers already abuse the system look at this: https://www.youtube.com/user/LawsuitReformNY
Don’t make ridiculous lawsuits easier.
And that’s why some carriers have a New York territory exclusion. “We’ll cover you anywhere, except New York. You’re SOL there.”
Amazing, simply amazing. I was wondering what insurance company was stupid enough to offer this cover, and then I saw that it was the product of two Fla. plaintiff attorneys. Even then, there has to be some company’s paper behind it. Agents should find out who and never do business with that carrier again.
All the more reason to adopt employer/employee arbitration personnel policies and put arbitration clauses in every contract.
Again, simply amazing.
Can we guess that the two that invented this scheme are members of the Trial Lawyers Association. Who in their right mind would offer this coverage on contingency/nuisance claims? Perhaps AIG?
Financial backing by Aspen in Bermuda.
This won’t make their carrier customers happy….
“Their stated goal is to protect themselves and to encourage lawyers to take on even riskier cases.” As if they aren’t doing that now! Nuff said!
This could be a growth industry. Just providing the coverage will bring lawsuits out of the woodwork, tie up the courts and slow down legitimate cases. Just think how much money lawyers could make on lawsuits that have no merit. Easier to focus on those than ones that do. So, for the social good, of course, it would have a negative affect, but it would make attorneys more money. Insurance companies, especially those that are started by those they are “protecting” can be rather stupid, but because of adverse selection, the company cannot last long.
It will be a challenge to price this product because recent experience won’t properly predict future claims. Attorneys will have much less incentive to not take a frivolous claim to court given less downside of settling. The other challenge will be in negotiating with attorneys who have this policy. Settlements will be more challenging and it will drive up costs of litigation
You’ve got to be kidding me. I really wish that Insurance Journal allows us to curse in comments because this article certainly needs to be roasted.
So…you can be a crap attorney and still get paid.
The premium is only 7% of the amount covered. That tells me the underwriting will be very tight which, in turn, tells me the winners (cases with merit) will far exceed the losers. This is not likely to be a boon to attorneys. More likely to be a boon to insurers. If anyone knows how to underwrite the risks associated with litigation, it’s insurance companies.
Get a mirror. Look in it and see a commission whore.
When I owned an agency, I NEVER sold on price, or let my producers do that. Coverage and other issues. Example, if a prospect had a debit mod on the auto coverage … why? Many times it was because of small PD claims. How many of you “experts” know that you can put a deductible on the cover? So? Put a $1,000 deductible on that and the carrier has to throw out all claims under that AND reduce all other claims by the deductible.
That, in one case, changed the debit mod from +1.28 to -.80. Immediately. No three year runoff.
Fools. Fools. Fools.
Sell your knowledge …………… not price. What do you think the attorneys, CPA’s do.??