You may have followed all best practices of the
industry in placing business for your clients in markets approved by your
agency's selection protocol in order to protect the agency from potential
claims and the client from loss. You followed up by monitoring the ratings and
activities of the carriers involved according to agency guidelines. In short,
you've done everything right. But what do you do when one of those carriers
suffers a rating downgrade? The following tips may help you to provide further
service to your clients while minimizing potential liability exposure to your
agency:
1.
Immediately notify clients of the downgrade and
answer any questions they may have to the best of your ability.
2.
Continue to keep your clients apprised of
developments - use carrier approved
notices/forms when available.
3.
If a potential solvency issue exists make your
clients aware of available guarantee fund protection.
4.
Discuss with your clients their options including
implications of a coverage move either at mid-term or expiration and potential
impacts on premium involved. Allow the client to make client to make the
decision as to which options to exercise and confirm in writing.
5.
Be consistent - treat all clients in the same
manner and document all client communications and agency actions taken in
writing.
6.
Consult with legal counsel regarding agency actions
and content of client communications.
7.
Maintain a positive relationship with the carrier.
Avoid negative references and review your contract with the carrier to determine
any duties or restrictions you may be subject to in regard to the downgrade.
All information
provided in this blog is for informational purposes only. The sources used are
presumed accurate. CalSurance Associates, Brown & Brown Program Insurance
Services, Inc. and Brown & Brown, Inc. will not be liable for any errors,
omissions, losses, injuries or damages arising from its display or use and will
not assume responsibility for any misguided information. No guarantees are
implied.
