Program News
What are the steps to take if a carrier you place business with has been placed into receivership/rehabilitation?
If you have a situation where a carrier you place business with has been placed into receivership/rehabilitation by the state’s Department of Insurance, these are the recommended steps to take:
- Run a list of clients from your agency management system.
- Call the clients to advise them of the financial situation with the carrier. Advise them they will receive a letter from you regarding the matter.
- Mail a letter to the client. Sample is available on the E&O Guardian website. If the Receiver/Rehabilitator has issued an FAQ document in relation to the carrier’s situation that can be shared with policyholders, we recommend including it with your letter.
- There is no need to mail the letter Certified. The mailbox rule is a legal principle which states once something is mailed, it can be presumed to have been delivered. Thus, the burden shifts to the receiving party to show that the letter was not sent, or sent to the wrong address, etc. You can also send an email, as long as you retain a copy of what was sent, and to which email address it was sent.
- If a client does not respond to the letter with their chosen action, the agent can treat it as the client wishes to wait until policy expiration to move their coverage. You will want to diary to follow up with the client prior to expiration to inquire about quoting replacement coverage.
- The agency should document all communications with clients as well as the carrier/Receiver/Rehabilitator during this process.
We have developed two sample letters that can be used in this situation, as well carrier downgrade.
EO-GUARDIAN-SAMPLE-CARRIER-Receivership or Rehabilitation by DOI-LETTER.docx
EO-GUARDIAN-SAMPLE-CARRIER-DOWNGRADE-LETTER_2023.docx
How to be a Closer by Shirley Zelenski
If there’s one thing that hasn’t changed over the decades that we have been working together, it is the goal of writing more business by winning over our competition. To achieve this in such a challenging market, we need feedback and accurate data to keep our product relevant and competitive. We are asking for a commitment from you to help with this, and it’s pretty easy.
Using the simple steps below, we are asking that you close out every quote not taken, and every renewal not renewed in Policy Decisions each month. This will help us provide YOU with collective information about our competition, strategize on how to overcome the loss of business, and win new business. When we run reports out of Policy Decisions, we must have accurate data and that means that you’re closing out quotes on a regular basis. Closing quotes not taken also guides us in reviewing rate filings, specifically, pricing and what each of you may need to excel.
Let’s help each other to meet our goals. Please, follow the steps attached each month to close out those quotes not taken!