Economy Puts Ethical Pressures on Agents

In my insurance travels I have found that most insurance agents are honest.

However, here is a 3 minute video from the Insurance Journal that points to an increase in premium theft by insurance agents.

Key signs that your agent is not forwarding your premiums to your insurance company:

-You never receive an insurance policy. When you ask, your agent provides you with another binder and offers excuses.

-Claims are paid with an insurance agency check rather than a check from the insurance company.

-Simple claims are dismissed by your agent that should be paid. You receive no declination from the insurance company and no adjuster calls.

-Most personal insurance premiums are “direct-bill” from your insurance company. However, you receive an agency invoice on your personal insurance with a request that you make the check out to the insurance agent or to a name different from the insurance company name.

-Your insurance agent offers a discount for cash or for a check made payable to the agent.

Of course all of the above can be legitimate mistakes or a different process for any particular insurance company. However, it pays to keep your eyes open.

The best way to avoid this is to deal with insurance agents well known in your community and remember the old adage…

If something seems to good to be true, it probably is.