AIG Contract Cancelled!

magagent · 01-05-2009, 04:21 PM

I recieved a notice in the mail over the weekend that stated something to the tune of... In the agent/agency agreement we reserve the right to cancel your Broker contract at any given any time. That is exactly what happened no reason or explanation.

I have called their mid-west brokerage division as I was instructed to do, and I keep getting the run around and no one can explain why my contract was cancelled.

Charpress · 01-05-2009, 04:29 PM

The only time I get these letters is for non-production in the prior 12 month period.

Insurance companies don't want to put up the $10 fee to renew appointments if they aren't getting production.

magagent · 01-05-2009, 04:35 PM

That was my thinking.

Charpress · 01-05-2009, 04:53 PM

It is insulting to get those things. Most of them are abrupt and have a "We're canning you because you did something wrong" attitude.

I had one that told me exactly why they were doing it and were more or less polite. The rest sucked. They seem to believe there is some disclosure or privacy issue that prevents them from saying something like "We're very sorry, but we are in the unfortunate position of having to disrupt your business because we're too cheap to put up the $10 to renew you."

Freddie · 01-05-2009, 05:15 PM

Seems like this dude already paid the $10 in the taxes he will pay to bail out AIG. I would not miss AIG. I know someone who works for them and their name is semi-mud to a lot of consumers.

Markingriffin · 01-05-2009, 05:48 PM

It's time to reappoint agents in most states. If you have not wrote anything in the last year, they are trying to save some money.

Ask them if you pay your appointment fee can you get recontract or can you write some new business and get back with the company.

tryan326 · 01-05-2009, 06:27 PM

You would think that most company would just tell you to pay the appointment fee or they cancel your contract esp. with all the independents nowadays. Sometimes you forget you even have a carrier until suddenly you have a need to use them.

bluemarlin08 · 01-05-2009, 07:48 PM

I can't imagine ANY circumstance that I would currently put a client with AIG, especially after the disclosures made public the last few days.

healthagent · 01-05-2009, 07:55 PM

Maybe the letter needs to be TO AIG:

AIG,

You are hereby notified that your contract has been canceled effective immediately. Please immediately remove my contact information from your database.

magagent · 01-06-2009, 09:37 AM

I would not even consider selling AIG to a potential client. I wasn't mad that AIG cancelled my contract since I haven't sold an AIG policy since this fall, I had a good idea they might not renew my contract which is fine with me.

I was furious due to the fact that no one at AIG had enough guts to tell me why they had cancelled my contract.

djs · 01-06-2009, 12:06 PM

I was furious due to the fact that no one at AIG had enough guts to tell me why they had cancelled my contract.

Take solace in the fact that if it had been anything due directly to you (other than production), you would know about it. No insurance company seems to answer questions when the cancellation is on their behalf.

Dan

SportsNut · 01-06-2009, 05:32 PM

Originally Posted by bluemarlin08

I can't imagine ANY circumstance that I would currently put a client with AIG, especially after the disclosures made public the last few days.

And the news will be more plentiful for AIG going forward. The worst is yet to come for them, IMO. Just too much to overcome, even with their new partners; (you and me).

I still can't believe that there has been no criminal referral in all of this. If not AIG personnel, then regulators. Someone (or many) was exceptionally derelict in their duties.

ims01 · 01-07-2009, 09:22 AM

American General is cancelling the contracts for agents that have not produced in the last twelve months. If you still want the contract then sign up again. Your IMO received notice a few months ago of the plan. They should have contacted you to see if you intend to do any business and let you know.

There is no reason to not sell American General. The parent AIG is partially owned by the US gov't. Would you buy T-bills? AGL will soon be sold and will continue to be viable and competitive. If there are any criminal charges, which I doubt, they will be at AIG and have nothing to do with American General.

For our team, the guys that whine about AGL are not submiting business. They guys that understand the situation are still doing a sizable amount of business with them.

magagent · 01-07-2009, 12:13 PM

I submitted my last AIG life policy in September, it was issued and I was paid about a month later on this policy. So that would be 4 months ago, so we can not blame the "12 month" rule on that one.

bluemarlin08 · 01-07-2009, 12:52 PM

Who is going to buy AGL? My sources tell me there aren't any buyers out there, no one is going to go into debt and they aren't willing to part with cash in these times.
We are replacing all AIG policies if client hasn't had a change in health.

ims01 · 01-07-2009, 04:34 PM

Magagent: Do you have two numbers with them? Based on what we were told, you would not have been cancelled. Call your IMO.

Bluemarlin08: No buyer has been announced, but there have been talks. True, cash is tight, but AGL is a cash cow. There will be a buyer. You may not want to announce you are replacing AGL polices. The NAIC put out notice that replacing AGL policies is not recommended. I think they call it "churning".