Three weeks for loss runs

[etimer]

Hm? I know of companies that get those loss runs out in several hours, a day or maybe several days. Last month I requested some from National Grange and they had them to me within the hour.

Today I had someone that wanted me to quote their renewal liability policy. He is a carpenter / remodeling person.

The people I place business with always want / need loss runs, it doesn't matter if you are a one man or a 50 man shop. That one man shop can have no claims or a lot of claims. Anyhow, I told the guy I would need loss runs from Erie his current carrier. He called the Erie agent and the agent said, why do they need loss runs to get a quote? If you really need the loss runs it will take 2 or 3 weeks to get them.

Hm? Three weeks for loss runs. I guess that is one method to retain business?

[TheInsKid]

We nearly always have to provide loss runs for our carrier partners as well. However, many states have regs. on how long a company is allowed to take to produce loss runs,so this is something you should check into with your state Ins Dpet. (IL has some very strick rules on who can obtain loss runs and the timeframe required to produce them)

Also, I use a service that is really slick and it helps automate the process a great deal.

ATIN (http://www.Allthingsinsurance.net) small price, geat way to obtain loss runs. Try it, you may like it too.

[mrmreff]

I recommend that you get the phone and fax # of the person at Erie that actually prints the loss runs. You can start with the main number published on the A.M. Best web site and work your way through the company. Fax a letter to that person signed by the insured. Follow up with a polite phone call and you should have your loss runs by Monday. I've used this method with many carriers and consistently obtain the loss runs before their agent does.

[independent guy]

Uh, there's no way it takes 3 weeks. It must be a profitable account, because the agent will lie to avoid losing it. I doubt they'd give you the information directly, they'd want the insured to call, then go through the agent... If you want to try anyway, Erie's number is 1-800-458-0811.

Erie...

[BrownMatt]

GET A LOSS RUN REQUEST LETTER SIGNED FROM THE INSURED ON COMPANY LETTERHEAD AND GO DIRECTLY TO THE CARRIER FOR THEM.

[etimer]

The insured did request the runs. I don't like when an agent bends the truth. Loss runs DO NOT take 3 weeks.

Uh, there's no way it takes 3 weeks. It must be a profitable account, because the agent will lie to avoid losing it. I doubt they'd give you the information directly, they'd want the insured to call, then go through the agent... If you want to try anyway, Erie's number is 1-800-458-0811.

Erie...

[BrownMatt]

THAT'S NOT WHAT I MEANT. TYPE UP A LETTER FOR THEM YOU CAN PUT THE INSURED'S COMPANY NAME, ADDRESS, PHONE#, LICENSE# ETC.
I HAVE PASTED A SIMPLE ONE THAT WE USE. THE INSURED IS A GOOD FRIEND OF MINE THAT I AM HELPING WITH HIS BUSINESS SO I'M SURE THAT HE WON'T MIND THE FREE PUB.

Golden State Construction General Engineering Contractors
CSLB# 873676, A
272 Amapola Drive
Sutter Creek, CA 95685-4407
Phone: 209-267-0322
Email: goldenstategec@sbcglobal.net



07/21/2006

To Whom It May Concern,


I, Richard Raso, of Golden State Construction General Engineering Contractors authorize Roberts & Phillips Insurance Services, Inc., to obtain loss runs on my behalf. Please fax them to 916-440-9794.


Richard Raso
General Partner

ONCE THE INSURED FAXES YOU BACK THIS LETTER, YOU GO DIRECTLY TO THE CARRIERS WITH A FAX COVER SHEET STATING THE POLICY#'S AND EXPIRATION DATES THAT YOU NEED. YOU CAN GET THE INSURANCE CARRIER'S DIRECT PHONE# OFF OF AMBEST. I USUALLY CALL THEM AND ASK FOR THE LOSS RUN DEPARTMENT AND GET THEIR DIRECT FAX NUMBER. THE MOST IT HAS EVER TAKEN ME WAS THREE DAYS.

I HOPE THIS HELPS. IF THE CLIENT IS WORTH IT TO YOU GO THE EXTRA MILE. UNDERPROMISE AND OVERDELIVER.

[bindscott]

It's not the carrier that takes 3 weeks to generate loss runs. The encumbent agent is a liar.

Here's the biggest mistake you'd made:
Never ask the insured to contact the agent for the loss runs. Their agent is busy writing 4 other insureds.

Here's what you need to do immediately:
1. Follow BrownMatt's idea.
2. Use the sample letter as a template.
3. Fax it to the carrier and reference your state's insurance code on the cover letter
4. Be careful not to disclose your heading on your fax machine
5. If not received within 3 days, call the carrier
6. If no response within 5 days, contact the new carrier and send them copies of the requests and explain to them that the encumbent is unresponsive
7. Contact your state DOI and make a complaint
8. Have the insured be aware of their unresponsive encumbent and how they're irresponsible. Good selling point for you
9. Advise your U/W that loss runs will follow upon binding

Now, for an immediate remedy, submit to other carriers / MGA's that don't require loss runs to quote.

Let us know how it worked out. Good luck

[etimer]

I started this thread to ilustrate a current event. Getting loss runs has never (before this one) been a problem.

When I said the insured did call, I don't know why there was a response in CAPs? I was replying to another post.

My usual method IS to get a signed request letter and then fax the request (these days it is usually e-mail). This time I was running short on time for the X-date, the insured was quite a distance from me and a phone call was the most expedite way. Not disclosing your number on a fax is breaking a Federal law. Can't remember which one but I believer it was far enough that it was during the Clinton admin. and part of a communication bill. I never hide my station id.

An agent busy writing 4 other's. I've been a one person agent / broker for a lot of years, wear many hats, work long hours but it is still my duty to service my client. It doesn't matter how busy I am. So I don't care if the Erie agent had 20 apps to get done.......he still has a client that it is his duty to service. Just my little IMHO on service we agents are to provide.

I've always considered that you win business on service and of course the price of the premium comes into play. I get a bit miffed when instead of winning through the previous, agents play game. Such as the agent in question dragging his feet to get loss runs. Maybe after 25 years in this business I am now old fashion in my thoughts on how to act in business. After all, a recent poll of college grads asked the question, "is it ok to cheat to get ahead in business?" Seventy six percent responded with a yes.

Last spring I lost a client to a broker that told a good one about the services they can provide. Aside from other misrepresentations, one of the services they told my client was that they (the broker) have an attorney on staff for my client to use. What my client did not know was, the "they" is an association that the broker belongs to and the attorney is in another State and is not free. That third party use of "we" can sure be used by creative people. To me, it was a $450 a month income case. It was a group health account, taken by broker of record letter and I didn't even know it was happening. It was a 22 person shop (commission is $20 a person) plus I had the group life. The incoming broker also told the client that "we" have an actuarial service that at renewal we can present to the insurance carrier and you can get a better rate. Again the broker forgot to say that "we" is the association the broker belongs to and it isn't a free service. Plus on such a small account the insurance company has their own actuarial runs, their claims run outs, their own benefits paid out. That broker provided actuarial run is all fluff, the insurance company isn't going to change their computer runs for a 22 person group. You can always request EOB's, run outs etc. and don't need a third party acturial report. Maybe if you were a big group, partial or fully self insured, with an account that is with a Captive......you may have a case for third party actuarial services.

I was talking with a TPA that I've known for twenty years and told him the above story. He said he is seeing more and more of agents that are bending the truth more and more. When will it be that the HR person figures out that all the fluff and stuff isn't free and isn't worth it. I think it will be when the owner asks about the new invoices he sees that need to be paid.

In the years I've been in this business I always strove to be squeaky clean. There were times I lost business to the new kid on the block, that months flying star, spreading the BS to get new accounts but eventually would crash and burn. Yes, those flying stars were the exception to the rule but I'm starting to think that in the world today, there are more of those flying stars. The types that are here to today, gone tomorrow but leave a path of debris behind them.

[bindscott]

etimer, certainly understand your frustration.

In this cold and cruel world, a bit of creativity is absolutely necessary. I didn't mean to break any laws but just suggesting ways to expedite the process to do your job and service your client. When was the last time you provided SSN/FEIN to a P & C market to receive a mere quote? This is also the new law to comply with the OFAC per US Patriot Act of 2001. Besides, many of your prospects would be reluctant to provide this to an insurance broker with all the identity theft going around.

I agree that service is very important but when an agent is asked to provide loss runs, they don't always consider that "Service" and it's certainly not a priority. It is a clear sign that "THE CLIENT IS SHOPPING!!!!".

I salute you for practicing "sqeaky clean for 25 years". If only all agents and brokers work like you do, we won't have any problems and our industry would get a little more respect from the general public.

Hate to break this to you but getting loss runs will always be a problem.

[BZA]

I was a commercial Erie agent before I moved to FL. Their loss run department is very prompt and efficient. Their standard reply to loss run requests is that it takes up to 72 hours from the time the request is received to process & release loss history, but in reality it usually takes a few hours or a business day. If you urgently need them they will work with you. Any agent that advises a 3-week turnaround time is either lying or retarded.

[poneil]

I request loss runs for our prospective clients all the time as a value added service. It helps to speed up the process.

I send the request right to the person at the carrier that is responsible for getting loss runs, but even then, I run into problems with a few carriers that will not honor a signed letter on letterhead from a client. They tell us that we have to have the client contact their current agent and request loss runs directly from them.

I ran into a nightmare of a situation when the client did contact their current agency to request loss runs AND the carrier. After two months, we still didn't have them. The client had to called them both back to find out what was going on-they both denied ever being contacted for the runs!

It takes carriers a matter of minutes to pull the runs and fax them to you. You'd think they would want to process the request and get it off of their desk.

Very frustrating.

[LadyBroker]

I find it interesting that carriers will grant loss runs to an agent who is not the current representative of the client. I know agents play games with loss runs, and I agree it's frustrating as a broker...but I don't know that I am so comfortable with carriers who release loss runs to any agent who requests them. I think that information is proprietary ,and at best, should only be released to the client themselves, or their current agent representative. On the E & S side of the house, carriers will usually not release loss runs to anyone other than the Client direct, or the holding broker.