OT: My insurance agent cancelled my policy and is rewriting without my knowledge or consent – WTF!

[profhoff]

Yesterday I received a letter in the mail from my insurance agent, let’s call them “Sleazy Insurance Agency,” that starts off:

“Dear profhoff:

You will be receiving a letter of non-renewal from Allied Property and Casualty Insurance Company for the above referenced policies.

Sleazy Insurance Agency no longer represents Allied Property and Casualty Insurance Company. We are in the process of rewriting your policy with one of our many other carriers we represent. However, replacement cost coverage varies from company to company as well as the endorsements to the policies. In most cases we will be able to save you $$ on your premium. However, in cases this may not be possible.

We will do our best to place your business with a carrier that has like coverage and endorsements.”

etc. etc.

My first reaction was, how can this be legal?! Then I called Allied and they explained that it is perfectly legal and happens frequently and outlined my options.

I’m wondering if the piggs have had experience with this kind of thing and also if anyone can recommend a reputable insurance agent that represents Allied?

[UCGal]

Since they are doing it at the renewal period, its legal and not that uncommon.
Its much less common to be canceled mid-term through no doing of your own.

[SK in CV]

It’s not a cancellation. It’s a non-renewal. A notice, I believe, required by law. And the agent is just trying to retain your business. The agent’s letter is awkwardly worded. They aren’t actually re-writing your policy, they’re seeking to change carriers at the end of the policy period. And they’re not doing anything without your consent, they’re notifying you of their intentions, you have the option to accept or decline. I don’t see anything sleezy. I see an agent acting ahead of the curve.

[joec]

In commercial insurance, this probably happens all the time if they don’t want to get into certain lines or areas of coverage. You don’t see it as much in personal lines like car/home, but even then, big insurers like AAA, Statefarm etc pull out of various states as well.

[profhoff]

When I called Allied, they said all my policies had been cancelled – the policy periods run through Nov/Dec of each year – and that if I did nothing, the agent would send me a new policy underwritten by a new carrier and that I could sign that OR I could find another agent that writes for Allied and see if the new agent could either a) uncancel my current policy so that it would continue or b) write me a new policy with new terms (at new rates).

So, it is a cancellation and the agent is attempting to re-write my policies.

Allied thought it would be hard to uncancel the policies and that I would probably have to have a new agent write new policies with new terms. So, they DID cancel my policy.

They also didn’t call me to tell me they no longer represent Allied. I checked to see who they represent now and I have never heard of any of the companies. Solvency is a concern.

So, I don’t want to work with this agent anymore – I consider this pretty sleazy. They could have called me and told me that if I wanted to stay at their agency I would have to give up Allied and then explained my choices.

I didn’t ask to have my Allied policies cancelled and now it will be a major hassle to get a new agent, write new policies, etc.

Anyway, I need to find a new agent that represents Allied and other reputable insurers. Any suggestions?

[SK in CV]

[quote=profhoff]They also didn’t call me to tell me they no longer represent Allied. I checked to see who they represent now and I have never heard of any of the companies. Solvency is a concern.

[/quote]

In reading their letter to you, it seems that’s exactly what they did.

Sleazy Insurance Agency no longer represents Allied Property and Casualty Insurance Company.

Solvency of the carrier should be a concern. If you don’t like the options this agent provides, go elsewhere.

And are any of your policies actually being cancelled before the end of the current policy? If it’s at the end of the current policy, that is NOT a cancellation. That’s a non-renewal. Despite what someone from Allied told you, if they (Allied) are still writing the kinds of policies you have/need, you should have no problem getting a new policy with them with an agent who is still writing for them. Non-renewal, solely as a result of your agent being dropped, should not have an adverse affect on your insurability.

[svelte]

Well I know how I’d react. I’d find another insurance agent.

I might give the agent an opportunity to explain him/herself, but it would have to be a damn good explanation (that checks out via research) before I’d stay.

[profhoff]

Explanation was weak. They said Allied was too expensive and so they decided to cut loose from Allied. Ok, fine, suppose that’s true (maybe Allied dumped them?).

Anyway, they could have called me and explained that they would no longer be using Allied and that I would need to move carriers if I wanted to stay with them. Instead, they sent me a weird letter that freaked me out and gave me the appearance of no choice in in the matter. Not good.

Anyway, found a new agent and will be moving on.

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