In insurance what would be some of the reasons why a client wouldn't renew a policy with the insurance company and what would be some of the reasons why a broker may not want to remain on risk?
1.An insurance renewal is the standard length of time an insurance policy is in effect without the insurance company adjusting your rate. ... But, once you are through the initial policy period, your insurance rate should stay the same through each policy renewal unless you make a change.
Having coverage cancelled or nonrenewed can be very traumatic for the client. While this may occur for reasons that have nothing to do with their insurability, such as when the agency and company terminate a relationship, the client is likely to take this news personally. It’s important to contact the customer immediately and let them know what steps, if any, will be taken to replace coverage. Remember that insurance companies must provide legal notice of cancellation and nonrenewal and that the insured is entitled to know the reason for the cancellation (usually upon written request).
This is an area where knowledge of state law is vitally important. Familiarize yourself with Texas laws and regulations regarding cancellation and nonrenewal.
One of the most troublesome areas for agents in terms of E&O is direct bill policies that are cancelled for nonpayment of premium. Many agents have a practice of calling or otherwise notifying insureds whose premiums are overdue. This practice is very dangerous, since it can lead the client into a false sense of security. The first time the agent fails to notify the client, and coverage terminates, they may sue the agent since they had always notified them in the past when their coverage was in jeopardy. Agents should be cautious about this practice. Either do it all the time for every client, or don’t do it at all. If you do it now and want to stop doing it, notify all your clients that you will no longer be providing the service.
We sometimes err by advising a client that a policy that is being cancelled will be reinstated by the company. Never tell a client this is the case unless you have written confirmation from the carrier.
Policies that are issued on a claims-made basis require special handling due to the extended reporting period option. There is a time limit to elect this option, and the insured should be notified immediately.
2 . In my June 19, 2001, editorial in IRMI Update #19, I discussed the issue of value-added services and the debate over an insurance agent or broker also acting as a consultant because of the conflicts of interest that can arise. Is there a conflict? Can an agent truly be objective? The reader response was overwhelming and can be summed up in two words—it depends. Whether a consultant, agent, broker, risk manager, or insured—past or present—readers appear to agree that the quality of advice provided by agents and brokers is dependent on the quality of the agent/broker.
also depends on the nature of the assignment and the inherent conflicts of interest that arise. For example, an agent's review and comparison of competing agents' proposals will be much more circumspect than an agent's advice on what to include in a construction contract's insurance requirements.
Of course, there are those who believe, rather strongly, that regardless of the agent/broker's knowledge and commitment, you must be either "fish" or "fowl" (as one consultant phrased it). These people believe that agents should stick to their primary duty of procuring insurance and should not offer fee-based consulting services.
I believe there is a middle road. An insurance buyer should choose an agent or broker based on his/her professionalism, demonstrated insurance and risk management knowledge, understanding and knowledge of the insured's industry, ability to communicate, and the quality of the supporting agency/brokerage infrastructure. The relationship should be grown and nurtured in the same manner as relationships with other professional advisers, and advice from agents/brokers should be sought and considered for many risk and insurance issues.
In insurance what would be some of the reasons why a client wouldn't renew a policy...
What are some advantages of incorporating your business? What are some reasons why you wouldn't want to incorporate?
Search for words such as “buy insurance,” “buy insurance policy,” “purchase insurance,” “renew insurance,” etc. on Google. Do the same advertisements appear for all the keywords? What is the reason for these possible differences? On a percentage basis, how important is AdSense to Google’s revenues?
List some reasons why someone would choose not to have renter’s insurance. How could a catastrophic event impact your finances if you don’t own renter’s insurance?
An insurance company would like to offer theft insurance for renters. The policy would pay the full replacement value of any items that were stolen from the apartment. Some apartments have security alarms installed. Such systems detect a break-in and ring an alarm within the apartment. The insurance company estimates that the probability of a theft in a year is 0.05 if there is no security system and 0.01 if there is a security system (there cannot be more than...
What are some of the reasons why a company would choose debt financing over other alternatives, such as issuing stock, etc.?
Almost all insurance companies have a reinsurance program in place. Provide 4 reasons why it is important for a policy holder to make sure that her insurance policy is backed by a strong reinsurance company.
What problems an economy may face in the absence of institution of insurance? Why some people consider purchasing insurance policy is against the spirit of Islam? How do you think that insurance is in conformity with shariah? Write an Islamic critique of conventional insurance.
Why would use use buffers in a 4-to-1 multiplexer? why wouldn't you use buffers? what are the differences/benefits?
Since firms want to maximize profits, why wouldn't producers necessarily want to produce output at the lowest average cost? Under what conditions would their profit be maximized and why?
What would be some reasons as to why a bacterial growth curve would produce unexpected results? For example, an E. coli culture increases after the stationary phase? Or why there is no stationary phase? I am trying to interpret results that I have from a lab experiment. Viable Cell Concentration vs. Time of Escherichia coli E 1.00E+08 1.00E-07 C 1.00E+06 60 80 100 120 140 0 20 40 Time (minutes) Spectrophotometer -96 Well Plate