One month policies make absolutely no sense. There is no reason to cater to people who don’t or can’t pay their bills. As an agent, that would be too much work without enough reward. I can’t believe agents asked for this. But, I guess if you are in the non-standard insurance business, you do whatever you can to have that revolving door going forever…never knowing what retention means.
This will be a great boon for illegals and uninsured motorists because now they will only need to buy insurance for one month of the year to have proof of insurance to get their license / plates!
Mr. Obvious, you’ve got it exactly right. This is clearly aimed towards individuals who have no intention of maintaining insurance for any longer a term that they need to in order to register their vehicles.
I don’t know if the Texas Insurance Commissioner has any authority to stop this in its tracks, but that’s what ought to happen. And Gainsco ought to be ashamed and embarrassed at themselves for bringing this product to market. How would they like it if they were hit by one of their one-month customers whose policy has lapsed?
I wonder how this will wash with the new database being developed here in Texas. I wonder if “Games”co is going to keep up with the database reporting requirements.
And someone please give me one LEGITIMATE reason for any person to need a one month policy.
TDI needs to for sure needs to take action. Because we all know that everyone that buys a 6 or 12 month policy pays in full or certainly makes all the payments. Listen folks, these policies serve a purpose. Not every consumer has the cash flow of the people reading the Insurance Journal. Buying a monthly policy does not mean it will not renew any more than buying a 6 or 12 month policy means that it will renew.
Are you kidding me?! There is no reason to cater to people who don’t or can’t pay their bills. Give me a break. Half the people in the good ol’ USA struggle to pay their bills. Are you guys so out of touch that you don’t realize how the wait staff at your country club lives?
The term of policy sold/bought is irrelevant. Many companies offer annual policies for one month down payment, meaning all the policyholder has purchased is one month of coverage. In this scenario, someone can purchase an annual ID card and then fail to make any further payments after the down payment. In the non-standard segment, about 30% of policies lapse after one month, another 20% after two, with both hispanics and non-hispanics demonstrating a temporary need for insurance.
These products have been around in the Texas market for years!! This is not a newfangled invention folks. I would rather get hit by someone with a one month policy than someone with nothing, wouldn’t you? The non-standard market serves an important niche and to insinuate that it is any less legitimate of a business than standard is simply ignorant. Come on guys…you are smarter than that. Look at the big picture and step out of your office once in a while.
One month policies make absolutely no sense. There is no reason to cater to people who don’t or can’t pay their bills. As an agent, that would be too much work without enough reward. I can’t believe agents asked for this. But, I guess if you are in the non-standard insurance business, you do whatever you can to have that revolving door going forever…never knowing what retention means.
This will be a great boon for illegals and uninsured motorists because now they will only need to buy insurance for one month of the year to have proof of insurance to get their license / plates!
Mr. Obvious, you’ve got it exactly right. This is clearly aimed towards individuals who have no intention of maintaining insurance for any longer a term that they need to in order to register their vehicles.
I don’t know if the Texas Insurance Commissioner has any authority to stop this in its tracks, but that’s what ought to happen. And Gainsco ought to be ashamed and embarrassed at themselves for bringing this product to market. How would they like it if they were hit by one of their one-month customers whose policy has lapsed?
I wonder how this will wash with the new database being developed here in Texas. I wonder if “Games”co is going to keep up with the database reporting requirements.
And someone please give me one LEGITIMATE reason for any person to need a one month policy.
TDI needs to for sure needs to take action. Because we all know that everyone that buys a 6 or 12 month policy pays in full or certainly makes all the payments. Listen folks, these policies serve a purpose. Not every consumer has the cash flow of the people reading the Insurance Journal. Buying a monthly policy does not mean it will not renew any more than buying a 6 or 12 month policy means that it will renew.
Are you kidding me?! There is no reason to cater to people who don’t or can’t pay their bills. Give me a break. Half the people in the good ol’ USA struggle to pay their bills. Are you guys so out of touch that you don’t realize how the wait staff at your country club lives?
The term of policy sold/bought is irrelevant. Many companies offer annual policies for one month down payment, meaning all the policyholder has purchased is one month of coverage. In this scenario, someone can purchase an annual ID card and then fail to make any further payments after the down payment. In the non-standard segment, about 30% of policies lapse after one month, another 20% after two, with both hispanics and non-hispanics demonstrating a temporary need for insurance.
These products have been around in the Texas market for years!! This is not a newfangled invention folks. I would rather get hit by someone with a one month policy than someone with nothing, wouldn’t you? The non-standard market serves an important niche and to insinuate that it is any less legitimate of a business than standard is simply ignorant. Come on guys…you are smarter than that. Look at the big picture and step out of your office once in a while.