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mrreddick

Well Known Member
OK, first, I know this has been discussed in the past about who's best, who's higher, etc., but I have I guess what is an ethical question concerning pursuing an Agency.
I currently have hull & liability thru an agency located in Texas. After the last two renewals (in September) I have received a warning from the lien holder (usually around the following January) that I have not provided them with a notice of coverage (something that I have repeatedly requested from the agency in question).
To make it a little more confusing (for the agency), my loan changed hands from Citizen's Nat'l Bank to PNC Bank of Pittsburgh, PA. They were notified last year that I needed them to forward the renewal notice to PNC but it appears they sent it to Citizen's Bank. This year PNC contacted us and warned that we MUST furnish them with the coverage info. I was on hold with PNC's rep while she personally called the agency in Texas and got the necessary info and had them update their info on my policy.
Now the agency in question has sent me a warning letter that if I don't fill out their "2nd Request" to update the aircraft and pilot info, AIG may not pay a claim and may possibly cancel my policy. I'm wondering where they sent the "first request", maybe to me in care of Citizen's Bank??
It appears that this agency wants you, the pilot/owner, to do all their leg work and not worry about updating their files (the warning from them STILL shows Citizen's Bank as lien holder).
My QUESTION is, among the insurance agencies, is there some sort of ethical practice in place that would cause them to frown on me changing agents to handle my policy? I'm happy with AIG's coverage and costs, although I guess my cost has been figured on time-in-type from over two years ago.
Help advise me if you can! Thanks!
 
no problem at all

You can choose whomever you want to represent you to the companies, at whatever time you choose.

Here's the only potential problem:
When you bound your current policy and paid your premium, your current agent was paid a commission (usually 15% of the total premium you paid). So, essentially, you have already prepaid for a year's worth of service from your agent. If you change agents, the new agent won't be paid anything unless / until you do something to incur more premium (ie. renew the policy, buy a new airplane, etc.) It might be tough to get an agent to work on your policy for the better part of the year for free.

The other problem comes should you change agents mid-term and then sell your airplane before the policy expires. Normally, when a policy is cencelled, whatever return premium that you are due is sent to the agent by the insurer. The agent than adds a pro rata portion of his commission and then sends you all the money you are due. If you change agents, the new agent can not return any "unearned" commission, because he had not collected any in the first place.

Hope that helps
 
...as far as the applications go... If you haven't sent in the application from September, you do need to do that. It's not for the agency, it's for the insurer and they will cancel your policy if you don't return it. It's the only way they have to document that you are who you say you are. They can cancel the policy - with 30 days notice - for failing to provide requested underwriting documents. But they must pay calims incured during any time the policy is in force.

FYI - it takes an agent about 2 minutes to request and receive a certificate of insurance from AIG for a bank. Call them and make them do it while you are on the phone.
 
RV Insurance

Jeff,

Thanks for the info. I was on the phone with the bank and the insurance agent and my point was, my agent doesn't seem to be earning that 15%!
After phone conversations, the paperwork they sent me for AIG still had the wrong lien holder and the threat to cancel came 6 months after renewal!

I guess my point is, I want to renew in September with an agency that will do their job, not wait for the insurer to ask for the numbers 6 months later after they've taken my money and then send out threatening letters. If you haven't figured out the Texas agency I deal with, PM me and I'll respond to you there.

If you or any others on the RV forum know of an agency that will do their job, please let me know. They'll get my business when it's time to look at renewing again.
 
mrreddick said:
If you or any others on the RV forum know of an agency that will do their job, please let me know. They'll get my business when it's time to look at renewing again.
Click to expand...

Ever heard the saying "Good thing it wasn't a snake, it would've bit you!" :)

The man who answered questions and gave helpful advice right here in this very thread has handled my airplane insurance for several years and does a superb job.

CDE
 
Sam Buchanan said:
Fortunately I've never had any claims, but the customer service has been superb for over a decade with Skysmith:
http://www.skysmith.com/
Click to expand...

I too have been with SkySmith for quite some time. I personally have not filed a claim but I have done major repair work for a customer who also uses SkySmith and I can assure you their service was SUPERB!
Their only comment after settling the claim was that my labor rate was too low.
 
I am insured through Falcon Insurance through AOPA and just went through the claim process with AIG. I am very satisfied with the quality and promptness of settling the claim.
 
Heres your answer. When you have done your part of calling and nothing changes this is what you do! Get a piece of paper out and write a letter to the insurer that you will be contacting your state Insurance Commissioner to complain about the insurance companies lack of cooperation and you WILL file the complaint with the commissioner. Make sure you get the names of managements chain of command. 3 levels up and submit your letter and send it with a signature request at delivery. Heres what happens. When a insurer wants to raise rates or continue to do business in your state it must go through the Insurance Commissions office for approval. In the approval process the complaints are used as a basis for denial for the rate increase or even doing business in the state. In my case which went on for 10 months it all ended when I called the insurance adjuster and told them what I was going to do with the 3 levels of management names and the letter and that they had 1 hour to get somebody out here to make a discission. half hour later man was out and 2 hours later I had check in hand. When you do your part going through the levels and it fails try it. Remember the raises these management levels get are dependent on service. Ron
 
Ron,

Mike's problem getting certificates is not with the insurer - AIG in this case, I think. It is with the agent not following through on the requst to change his lienholder and request a new certificate.

Let's save our nastigrams to the state insurance departments for major issues. If we send letters for every minor service issue - over which the insurer has no control -it dilutes the effectiveness when we may really need to do it.

Mike just needs to fire his broker at renewal and pick a new one that will process his requests.
 
Insurance Broker

Guys,

Thanks for all the advice and info. Jeff is right, my gripe is not with AIG but with the broker I am currently using. It appears that after you've spent your time on the phone with them, even the bank's loan department has contacted them to update the necessary info, they don't know how to hit the save button and when it's renewal time (or 6 months later in my case), you get the same hassle.
I think it's time I get a new agent and give the boot to my current one but I'll wait 'til renewal time to take action.
Thanks again!
 
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