Non Renewing HO3, cannot reach policyholder

[RickyG]

How would you handle this situation?
Carrier is non renewing an HO3 policy. Letter goes to policyholder, no response. Calls and emails go unanswered. We have 2 days until the policy is canceled. We have all the current mortgagee info and it is a mortgage billed policy. We also have a quote that matches coverage and is a slightly lower price (miracle) than the previous years policy.

A. Just bind the new policy and bill mortgage company to protect client and then if we find out there was an issue doing so, backdate cancel the policy at that time
B. Do nothing let the home go uninsured and eventually get force place coverage by lender which will be roughly 10x more on a monthly basis

I know the "black and white" choice is B. but I am saying in all reality you Mr. or Ms. Agent reading this, how would you handle?

 

[Allen Trent]

How would you handle this situation?
Carrier is non renewing an HO3 policy. Letter goes to policyholder, no response. Calls and emails go unanswered. We have 2 days until the policy is canceled. We have all the current mortgagee info and it is a mortgage billed policy. We also have a quote that matches coverage and is a slightly lower price (miracle) than the previous years policy.

A. Just bind the new policy and bill mortgage company to protect client and then if we find out there was an issue doing so, backdate cancel the policy at that time
B. Do nothing let the home go uninsured and eventually get force place coverage by lender which will be roughly 10x more on a monthly basis

I know the "black and white" choice is B. but I am saying in all reality you Mr. or Ms. Agent reading this, how would you handle?

No option other than B as you have no way to answer any of the questions on the application for the insured nor their signature. Their answers to the application questions is their offer to the carrier to be a legally binding contract along with the tender/money. the carrier issuing the policy is the acceptance in contract law. without an offer, you cant have an acceptance & cant have a contract.

 

[RickyG]

-No option other than B as you have no way to answer any of the questions on the application for the insured nor their signature. Their answers to the application questions is their offer to the carrier to be a legally binding contract along with the tender/money. the carrier issuing the policy is the acceptance in contract law. without an offer, you cant have an acceptance & cant have a contract.-

Agreed, that is why I said B is the "black and white" choice. However, I am asking in the real world would an agent abide by that or just write the policy to help client avoid the issue?
To be clear, I am not doing this, my office does not do this. I would get very little out of doing that with massive consequences. I was thinking more the rank and file IA who may be more open to such a thing.

Heck technically only agents can bind policies but when I worked at AllState the front desk people would bind and quote left and right all day.

 

[adjusterjack]

How about C: Go to the client's home and find out what's happening?

 

[AZDave]

I would do one last email with a read reciept, then move on.

Rates and Ghosting are way up in '24.

 

[RickyG]

"How about C: Go to the client's home and find out what's happening?"
You are a better agent than me if you do house calls.

 

[marindependent]

Document, Document, Document your process. Document the emails, Document the Phone Calls, Document the Texts, Document the new offers all in your AMS.

 

[ehall2]

There are some customers you don't need. If they won't respond forget them. This is an e&o claim waiting to happen.

 

[RickyG]

How would it be an E&O claim? I would think the reverse would be more likely. Probably not enforceable but more likely. Coverage cancels, home burns down next day. Client says nobody told him so hires attorney.

 

[marindependent]

Coverage cancels, home burns down next day. Client says nobody told him so hires attorney.

Exactly

Or

The client claims that you were supposed to set them up on Auto Pay. Or that they their last payment was supposed to last for 20 years or that you told them that they did not need to have insurance or that someone in your office did not return his phone call or that your incompentance got them nonrenewd or the insurer that you helped them choose you should not have chosen or... get the point?

It does not have to be true to be a claim it can simply be an allegation [crazy or otherwise.]