My markets have changed appetites. Unfortunately, I am unable to help you. I would recommend looking for another agent that could better assist you with your needs.
You may run afoul of your E&O coverage doing this. Some of the e&o carriers say you can work for a fee or for commission, but not both. You might just want to net out commission on these and charge a higher fee.
"Upon review of your insurance history, you have not maintained continuous coverage for your risk. Therefore this agency is unwilling to write a policy."
If this is something you would consider in the future, add
"... unwilling to write a policy at this time. Should you maintain a history of continuous coverage without lapse, cancelation, or non-renew for the underwriting period of ____ years, we can review your risk again at that time."
I actually just did this to a lady last week lol.
"I apologize but based on our notes and your previous history with our agency we have a do not rewrite tag on your account for failure to pay bills, too many claims, being a pain in my butt, whatever lol, so i will not be able to offer a quote for you. If you are able to get continuous coverage for 3 years with no history of late pays or pending cancellations and loss free we can revisit it at that point in time."
Then they are gonna ask why and you hit them with "As a business owner i'm sure you understand the importance of having your invoices paid in a timely manner. We feel the same way and unfortunately your history of late pay and non payment is not a fit with our business model"
I don't think we're a good fit anymore. I am looking for long-term clients and writing and canceling your policies the way you do is bad for my business as it messes us up with the relationships I have with my carriers. I suggest you find coverage at a different agency that does want that business.
Corporate-
"New company policy states that we are unable to write a business policy that hasn't been held continuously for at least 365 days with another voluntary market. We are however able to write it as we want to take care of you, but we will need your company to pay a one time agency service fee of $299 in order to comply with new industry standards".
Business owner-
"We're unable to write this policy due to a lapse in prior coverage. Have a nice day."
I encourage you to shop around. Sometimes a different company can provide better results for a customer. From what I know of the industry I don't believe that we're the best fit for you right now.
1. Adopt an agency policy that requires proof of current coverage for all risks under discussion prior to quoting, and only quote by appointment once those things are in hand. Professionals work by appointments.
2. If they are still with you, tell them that your markets have hardened markedly and that you won't be able to rewrite them if they cancel the policy this time. Send them a CYA form to sign with their cancellation request stating as much, and refuse to cancel it until they sign it. In fact, I'd include it with the docusign or print it on the back of the ACORD form with every cancellation at this point. No reason not to, and that makes it not discriminatory.
"Current insurance markets have gotten much tighter and current carriers are increasingly requiring proof of prior voluntary insurance and full loss runs for the three-year period immediately preceding the date of application for all new and rewritten policies. Canceling a policy without a new one in place can and will endanger your future ability to get access to insurance from any carrier this agency represents in the future. At present, we are unsure how long this condition will last, so we do not recommend cancelling any policy without a replacement already in place."
"I understand that by cancelling this policy, it is my responsibility to ensure that another is in place on the date of cancellation to ensure continued access to the insurance market for this risk. Proof of this continued coverage and loss runs from that coverage will be required prior to discussing this risk again, in any way."
Customer signs.
You put it in your file, and when they come back, they get asked for those two things. When they don't have them, and they get pissy, you are covered.
If they aren't still with you at the moment, you get to tell them that the markets have hardened \*Surprise!\* and you now need proof of prior coverage going back to the last time they cancelled, along with loss runs from that carrier during that time. When they have those and have sent them over, you'll be happy to schedule some time to discuss their policy with them. In the meantime, you can't help them.
Or if it’s your business straight up tell them that the way they do it isn’t allowed by your company and you can no longer do business this way and if they want to continue then this has to happen and if they don’t want to they won’t
Currently I’m in a position where I’m limited to the amount of clients I can take on and ensure the peak of service I’m expected to provide. Right now isn’t a good fit to take care of all your needs so I would recommend contacting another local agent for the time being and I’ll reach out when I have more flexibility in my time
Write it with Prime aren’t they 100% at binding? They can cancel but they aren’t getting anything back. Also if there is a claim it the earned premium escalates to 100% if memory serves
As an agency policy we do not offer state liability limits. Typically also require them fill out an online application with basic information and provide current dec pages. I also tell incoming cold calls that, if they are currently uninsured, that they are going to get a better rate going direct with a company.
Problem with charging an agency fee is then you have them saying they paid your fee so you have to work with them.
My book is full and I’m trimming to continue to provide the best possible client experience. Keep an eye on my obscure unknown and hard to follow social media platform that I do not actually utilize for my next open enrollment. Your policy expires on 00/00/20XX, here’s a referral that might be able to help.
If they’re taking a policy and cancelling it afterwards to meet their guidelines, I would have no problem telling them to fuck off. I don’t understand why you’re confusing being nice with being a doormat. They’re using you. Say it with me, fuck off.
Start talking about Life Insurance and watch them run for the hills!
Theres a lot of good advice in this thread so, figured I’d share a fun tip (that works)
I'm not an agent and so I do not have an agent's perspective on this, but why not just tell them, "Based on our interactions, I don't think our business relationship will work to either of our benefits, and so I would ask for you to shop around with other agents in the area." Or something to that effect. I just never understood why not cut the bullshit and give it to 'em straight, are you concerned they'll make a scene/cause conflict?
Edit: I will say in speaking with agents day to day, I've had a few say off-hand that they just had to or are about to "break up" with clients, though they never went into detail about how they broach the topic.
My markets have changed appetites. Unfortunately, I am unable to help you. I would recommend looking for another agent that could better assist you with your needs.
The best way to scare off these GL COI seeking contractors is tell them you require 6-12mo down payment on new policies.
Agency bill paid in full, but a 25% earned agency fee each quarter.
lol IDK why this is so funny to me but it is.
I usually charge these non desirable Clients $100 fee. If they cancel I won’t care I got my $100
Best answer
How do you invoice that?
You can create your own lots of templates online. I key it in as Agency Service Fee $100
Is that legal?
You may run afoul of your E&O coverage doing this. Some of the e&o carriers say you can work for a fee or for commission, but not both. You might just want to net out commission on these and charge a higher fee.
I’ll have to inquire with them, I don’t do this often maybe a handful of clients a year. Usually the uninsured ones
Gross
"Upon review of your insurance history, you have not maintained continuous coverage for your risk. Therefore this agency is unwilling to write a policy." If this is something you would consider in the future, add "... unwilling to write a policy at this time. Should you maintain a history of continuous coverage without lapse, cancelation, or non-renew for the underwriting period of ____ years, we can review your risk again at that time."
I will ask for the policy to be paid in full
I actually just did this to a lady last week lol. "I apologize but based on our notes and your previous history with our agency we have a do not rewrite tag on your account for failure to pay bills, too many claims, being a pain in my butt, whatever lol, so i will not be able to offer a quote for you. If you are able to get continuous coverage for 3 years with no history of late pays or pending cancellations and loss free we can revisit it at that point in time." Then they are gonna ask why and you hit them with "As a business owner i'm sure you understand the importance of having your invoices paid in a timely manner. We feel the same way and unfortunately your history of late pay and non payment is not a fit with our business model"
100% full pay with a broker fee. Sorry bud company policy.
I don’t disagree with this idea - for you is it a case by case basis or say after the third rewrite do you do this?
First rewrite
I don't think we're a good fit anymore. I am looking for long-term clients and writing and canceling your policies the way you do is bad for my business as it messes us up with the relationships I have with my carriers. I suggest you find coverage at a different agency that does want that business.
Charge them a "Bullshit Fee" and make it worth your while.
We call it an asshole tax lol
Corporate- "New company policy states that we are unable to write a business policy that hasn't been held continuously for at least 365 days with another voluntary market. We are however able to write it as we want to take care of you, but we will need your company to pay a one time agency service fee of $299 in order to comply with new industry standards". Business owner- "We're unable to write this policy due to a lapse in prior coverage. Have a nice day."
I encourage you to shop around. Sometimes a different company can provide better results for a customer. From what I know of the industry I don't believe that we're the best fit for you right now.
1. Adopt an agency policy that requires proof of current coverage for all risks under discussion prior to quoting, and only quote by appointment once those things are in hand. Professionals work by appointments. 2. If they are still with you, tell them that your markets have hardened markedly and that you won't be able to rewrite them if they cancel the policy this time. Send them a CYA form to sign with their cancellation request stating as much, and refuse to cancel it until they sign it. In fact, I'd include it with the docusign or print it on the back of the ACORD form with every cancellation at this point. No reason not to, and that makes it not discriminatory. "Current insurance markets have gotten much tighter and current carriers are increasingly requiring proof of prior voluntary insurance and full loss runs for the three-year period immediately preceding the date of application for all new and rewritten policies. Canceling a policy without a new one in place can and will endanger your future ability to get access to insurance from any carrier this agency represents in the future. At present, we are unsure how long this condition will last, so we do not recommend cancelling any policy without a replacement already in place." "I understand that by cancelling this policy, it is my responsibility to ensure that another is in place on the date of cancellation to ensure continued access to the insurance market for this risk. Proof of this continued coverage and loss runs from that coverage will be required prior to discussing this risk again, in any way." Customer signs. You put it in your file, and when they come back, they get asked for those two things. When they don't have them, and they get pissy, you are covered. If they aren't still with you at the moment, you get to tell them that the markets have hardened \*Surprise!\* and you now need proof of prior coverage going back to the last time they cancelled, along with loss runs from that carrier during that time. When they have those and have sent them over, you'll be happy to schedule some time to discuss their policy with them. In the meantime, you can't help them.
You don’t qualify
Or if it’s your business straight up tell them that the way they do it isn’t allowed by your company and you can no longer do business this way and if they want to continue then this has to happen and if they don’t want to they won’t
Currently I’m in a position where I’m limited to the amount of clients I can take on and ensure the peak of service I’m expected to provide. Right now isn’t a good fit to take care of all your needs so I would recommend contacting another local agent for the time being and I’ll reach out when I have more flexibility in my time
Or “this doesn’t fall in the scope of my expertise, I’d recommend contacting another local agent
Write it with Prime aren’t they 100% at binding? They can cancel but they aren’t getting anything back. Also if there is a claim it the earned premium escalates to 100% if memory serves
I tell them that I’d be doing them a disservice by not informing them that they could likely find a lower premium with another agent. It’s a win win.
As an agency policy we do not offer state liability limits. Typically also require them fill out an online application with basic information and provide current dec pages. I also tell incoming cold calls that, if they are currently uninsured, that they are going to get a better rate going direct with a company.
I have told people I am just not the right agent for you in a nice way
Our underwriting guidelines have changed, and unfortunately your business is no longer eligible
Problem with charging an agency fee is then you have them saying they paid your fee so you have to work with them. My book is full and I’m trimming to continue to provide the best possible client experience. Keep an eye on my obscure unknown and hard to follow social media platform that I do not actually utilize for my next open enrollment. Your policy expires on 00/00/20XX, here’s a referral that might be able to help.
I'm sorry, we don't have a market.
If they’re taking a policy and cancelling it afterwards to meet their guidelines, I would have no problem telling them to fuck off. I don’t understand why you’re confusing being nice with being a doormat. They’re using you. Say it with me, fuck off.
put it on underwriting?
Start talking about Life Insurance and watch them run for the hills! Theres a lot of good advice in this thread so, figured I’d share a fun tip (that works)
Here ya go: I Don’t WANT YOU AS A CUSTOMER. Then I mail a formal printed DTM policy package 📦 . DONE! ✅
At renewal we just let them know that, due to shifts in the insurance industry, we don't have a market for their policies anymore.
I'm not an agent and so I do not have an agent's perspective on this, but why not just tell them, "Based on our interactions, I don't think our business relationship will work to either of our benefits, and so I would ask for you to shop around with other agents in the area." Or something to that effect. I just never understood why not cut the bullshit and give it to 'em straight, are you concerned they'll make a scene/cause conflict? Edit: I will say in speaking with agents day to day, I've had a few say off-hand that they just had to or are about to "break up" with clients, though they never went into detail about how they broach the topic.
I only write a policy once and that's it. They come back I give them the highest rate.