An agency has a client who pays inconsistently, files fictitious claims, fails to report new drivers and puts off audits, among other dishonest behaviors. The agent asks the insurer to non-renew on renewal due to claims, but the company can only do so on one policy, not all of them.
Q: "How can we get rid of customers like this? Can we refuse the client but offer to refer them to another agency as their agent of record if they want to continue using the same insurer? If this is possible, how can we go about it?"
A: “This is a very common question, and the Big ‘I’ Virtual University (VU) has several articles with tips you might find helpful. See below.
If you have evidence of fictitious claims and other dishonest or illegal actions, you can—with advice from counsel—consider reporting this to the insurance department. A felony insurance fraud indictment is likely to evoke a pretty swift behavioral change.
I don't understand the non-renewal problem. An insurer can usually non-renew a policy for any reason other than something, for example, that is discriminatory or otherwise illegal. Midterm cancellations typically require a contractual or statutory basis, but that’s not the case for non-renewals. If the insurer is aware of this situation, I can't imagine why it would want to retain this insured.
Check out the following VU articles for additional information on this topic:
Bill Wilson is director of the Big “I” Virtual University.
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