Screwed by Carrier!

[HarryDaBroker]

i got a broker authorization letter from a client. they were going direct with the carrier and gave me authorization to shop it. i got the incumbent carrier from 20% renewal to 8% with very minor changes in plan design. I also got a competing carrier to 6% renewal with the same plan designs. the incumbent had a better network for the dental, but the competing had a better network for the medical...

heres my question, the incumbent who had been going direct, not paying broker fees, received the broker authorization letter and was negotiating with me. then went direct to the client to negotiate a deal to cut me out.

my question. is that legal being i had a broker authorization letter? i appreciate any comments based on experience. thanks in advance!

 

[somarco]

Broker letters have no legal binding authority.

Even had a couple of situations where I did a lot of work and plan design suggestions that saved a lot of money only to have the owner show my proposal to the incumbent who said "I can do that".

I have had a few horses shot out from under me as well. It's no fun. Get over it and move on.

 

[HarryDaBroker]

Broker letters have no legal binding authority.

Even had a couple of situations where I did a lot of work and plan design suggestions that saved a lot of money only to have the owner show my proposal to the incumbent who said "I can do that".

I have had a few horses shot out from under me as well. It's no fun. Get over it and move on.

After a couple of vodkas and a mild hangover I guess I am over it. Actually I gotta laugh about it. New rule, I charge a retainer which gets waived if I get the BOR & a contract.

Thanks for the reply!

 

[leevena]

Somarco is correct, but another thing occured to me. It was the employer who screwed you, not the carrier.

 

[Ann H]

The carrier shot themselves in the foot on this one. That was not wise on their part.

If you use that carrier a lot, I would suggest going to the rep or sales management to tell them that they damaged their reputation with you by not respecting your relationships with clients. Tell them that you will be reticent to have them quote for any of your clients or prospects if they have a practice of going to the client direct. My guess is that you'll get the BOR, an apology, and most importantly the respect you deserve.

 

[LGilmore]

Welcome to group. I think just about anybody who's spent time with group has had a similar experience.

 

[ABC]

It's a real fine line to work as the broker without being the BOR. I would never negotiate with the current carrier without being the BOR.

Call the client and get their view.

 

[HarryDaBroker]

thanks guys! i guess it was part of my learning curve, lol. ive learned...

and for the record, it was the carrier & the client. the carrier called the client direct to keep the business & the client acted in the best interest of the company saving some money & cut me out. no harm, no foul play. this time "shame on me"

again, thanks for all you uplift!

 

[ABC]

It happens.

I have had situations where I saved large group $300k and the group went back to current carrier and they matched it.