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September 2000 |
What the heck is happening with PIP/PD in South Florida?
Union American has withdrawn from the market (fact), American Skyhawk has dumped its PIP/PD program (fact), Ocean Harbor is curtailing its writings in Dade County (AIM - no comment) and a number of other minor players have taken a licking, and can't keep on ticking.
Inadequate rates and high levels of service seem to be the culprits.
Meanwhile, companies remaining in the PIP/PD market are bracing for an onslaught of more unprofitable business. Fortune has a pending rate increase and Urban and Eagle insurance companies have dropped their PIP/PD commissions to from 17.5 percent to 15 percent.
State National is paying 15 percent on PIP/PD and is appointing agents throughout the state. (Bob Anderson, Assurance Managing General Agents, 1-800-293-2532)
Space Coast is restructuring its programs. It is shifting all PIP/PD business to its Interstate program and has re-filed the Harbor Specialty program as a more upscale -- proof of prior program.
As reported in our recent Specialty Agents Newsfax, Daytona Beach agent Susan Graves has been appointed to fill Dave Rouleau's recently vacated seat on the SA state board. Other members of the SA board are up for re-election in May. They include Richard Hill, Adrienne Fleming and Arnie Vasquez. Other who wish to run for one of these seats should contact Michele at 1-888-290-8436 by March 13.
Tim Ireland leads in our straw poll for the insurance commissioner race. Cast your ballot at the SA website ... specialtyagents.com.
Urban Insurance and Eagle Insurance have filed a towing and rental endorsement that is being attached to their insurance policies. The plan comes in three flavors. Plan A, B and C at $20, $25 and $50. The first two plans pay the same commission as the policy, 17.5 percent. However, Plan C pays 50 percent. The plans offer dispatch road service, towing and rental reimbursement nationwide. It was developed for Robert Plan by Nation Safe Drivers, and as a part of the policy, you don't have to worry about sliding.
Speaking of Eagle Insurance, if you don't represent the company, look at the Quick Quote Super Sampler in March. Eagle has a three-tier program that ranges from specialty rates to preferred. We are told the rates are very competitive, beating the "P" company like a drum. Commissions are 15 percent regardless of the tier, and up to 18 percent for volume producers.
That's what we like to hear.
Pete Mitchell, DOI chief of staff, has resigned from the department to become a consultant with a Tallahassee law firm. He was with DOI for five years.
Linda Shelley, general counsel for the Florida Residential Property and Casualty Joint Underwriting Association, will replace Mitchell. She also was chief of staff under former governor Lawton Chiles and oversaw the state's Emergency Operations Center during Hurricane Andrew.
Try this one on for size. One of your carriers requires that you use its software to rate a risk (credit score, MVRs, etc.), then upload to the company. Rather than allow it to sweep your account, you mail your check and a copy of the app to the company. Several days later, both you and your insured receive letters indicating the money had not been received. The letter was generated by the company on the 26th, and your bank indicated your check cleared on the 26th.
When contacted, the carrier denies that it sent the letter, as it didn't appear to be on the company's letterhead. It insists its system was not programmed to generate such letters.
Upon further investigation, it seems underwriting simply assigned a new policy number to the mail-in app and slapped the check in the bank. Could there be a hole in the system that would allow two policies to be entered for the same person, same effective date and same premium? Duuhhhh!
After upsetting the client and raising questions about the agent's honesty or business practices because of a company foul-up, what should the company do?
Apparently nothing. It fixed the policy, but did nothing to erase the black eye it gave the agent with his insured.
Heard On The Street (HOTS) contains information -- rumors, gossip, innuendo...maybe even the occasional fact (career moves, promotions, new companies in Florida, commission news, etc.) -- passed along to us by agents and company reps in the field.
The opinions, information and observations expressed in HOTS do not reflect the positions of Specialty Agents, its officers or directors.
By the way, if you'd like to pass along some information, call 904-778-0166 or fax 904-771-6402.