Agent Commissions Chart

[djs]

Fair plan is basically a carrier of last resort. Can't find home insurance anywhere else? The state ran fair plan will take it. Think of it as the risk pool for health insurance.

There are a LOT of caveats and rules and exceptions and paperwork and it NEVER pays more than other carriers.

Dan

 

[VolAgent]

So the only reason an agent would put someone in it is because they couldn't find anything better? Or just didn't want to write a vacant property policy?

 

[djs]

Bottom line is there is FAR more to this story than has been presented. Simply put, a one sided version has been told to make the OP think he is right.

He might be, but, I still think there is a whole other side to the story.

My guess is, the homes were not in great shape, placed with the fair plan because a preferred provider wouldn't take them (on top of being vacant). The investors go in, fix them up, resell them. Pretty normal stuff.

This is part of the reason I assume the 2 declines is a non-issue. If submitted, they would have been declined, and I assume the fair plan administrators will accept that, without the need for actual documentation, other than the reasons they would not be acceptable.

I have no idea why the agent placed these with the fair plan, other than he didn't want his retention ratios to go through the floor and nobody cares about retention on the fair plan. I'm not sure, but I think Texas has a plan for investment property, so it just isn't as clean cut as it sounds.

My guess is the OP signed off on these as owner occupied knowing his experience with car dealerships thinking he could just plead consumer ignorance. I wonder if the agent is somewhat in cohoots with this, thinking it will be an E&O hit, but not really a cost to him.

I am very curious how this ends up working out. I've seen carriers pay these types of situations (never seen the fair plan do it, but I don't monitor fair plans much). I've seem them reject them. There is a distinct pattern to how much they will bend (not break) the rules, but a known pattern of abuse by the agent or the client usually doesn't get much bending at all.

My guess is, mediation will be short. The carrier will point to clauses in the policy about vacancy, point to the application submitted, and pretty much walk out the door. The agent will point to the application submitted, the representation of the client of the policy, admit he was confused about tenant occupancy versus owner occupancy, but the house was apparantly totally vacant. His E&O lawyer will point to the application submitted, the clause in the policy about vacancy, and walk out the door with the agent.

The clients lawyer will then try to catch everyone before they get on the elevator and start negotiating a settlement, realizing everyone has some fault in the situation.

In the end, the client will be accused of insurance fraud, the agent will get admonished for not properly underwriting the policy and will lose his appointment with the Fair Plan. The carrier may refund the policy premium. Why? Insurance companies and E&O carriers have FAR more lawyers than the client does. Is it right? Probably not.

Dan

 

[Guest]

I have another thought, what are the vacant clauses there? For primary? most of mine are 30 days, a few are 45 and a few are 60 days. I wonder if they wrote this as a primary expecting the renovations to be completed and sold withint he vacancy time frame?

Remember, what defines vacant? I was told by an U/W that someone must spend the night in the house once every 30 days.....well hell, if the guy is doing the work himself, worked late, slept on a sleeping bag and spent the night there. Kinda BS I think, but also, prove this happened. seems like a fine line you know.

 

[Guest]

Your contract is what governs the commission rate. If you signed it you have nothing to argue. Companies pay based on your contractual agreement. Nothing is standard between companies. Some pay 10 some pay 12 some pay 20. Good Luck.

Gulliver

glad you read the entire thread..........

 

[Gulliver]

Thanks for keeping me honest!!

Gulliver

 

[Matt37]

Found this thread.. made me crack up.

We had an insured who owned a little building that for all intents and purposes was vacant.

He must of did some homework and put a a table and other small pieces of furniture along with some personal possessions.. and went back to the place every so often for the day just to putt around and smoke a cigarette...

He had a huge loss.. we argued it was vacant, he said it was just unoccupied at the time.

We lost, and wrote him out a check.

Just saying what happened.. not saying Red Blooded American is a big douche or anything..

 

[Guest]

WOW, some new punk calling me out already.....

I love this BB

 

[Frank Stastny]

WOW, some new punk calling me out already.....

I love this BB

It's kind of like what the drunken mouse said, "Bring on the damn cat". haha