Geico kickbacks

Scott Ashton

Expert
82
Here in Florida I am losing my accounts I've built up for the past 25 years. It seems during covid, Geico started paying salespeople $25 for every customer sent their way. I've heard they don't even have to purchase! Not only is itnagainst Florida statutes, they end up "vacuuming" the customers up. Example: salesman at dealership got Geico on the phone & had them switch. I never got to speak with customer. They ended up coming up with another down payment for Geico, paid more for the policy, and the customer lost longevity accrued. Salesman gets his $25. Some are getting $100. We as small business owners need to address our depts. of insurance. Please agent owners...help out in Florida & contact someone. I have and I am waiting on their response. I spoke with the investigator for the state...his response, what do you want me to do about it? Really? Maybe do your job? These are the same government employees who said it was perfectly legal for a non-licensed Geico employee to pass out cards as long as they don't talk insurance?! Who the hell is going to monitor that? Maybe the lobbyists who got this bs passed as law? The rest of us agents have a tough 220 state exam to pass. I'm waiting on a response from the Attorney General. We need to get the word out over this. Customers are so screwed & don't even know it.
 
What specific law has been broken? $25 referral? Word of mouth advertising and referrals? A CSR can hand out cards for her company so long as that person doesn't talk about rates all day long. Many captive and independent agents allow their staff to use the dropdown writing number of the agent when the CSR isn't licensed. It is against stautes but it happens every single day.
 
The law in Florida is you can give out $100, whether an auto policy is written or not, annually per person. It's unenforceble. The law was obviously introduced to benefit a large corporationSo do you want to get in a bidding match Geico. We have the hardest test in the country & yet Geico passes out cards with non-licensed personnel (not even a csr) which according to the state is legal "as long as they don't talk insurance" another bs unenforceable law. Why don't I just hire a hooker with legs & cleavage next. Really?
 
If you think it will get business, give it a try. Geico also spends 10's of millions of dollars on TV and radio advertising. Their 800 number takes calls from all over the country. They also have one of the lowest retention ratios of major carriers. Accept it or get out. There is little that you can do to combat their war chest.
 
Buy the way rich man....now the payoff is up to $50 per referral from Geico. Wanna get in a pissin war? How deep are your pockets? You sir, need to be out of the business if you agree with pay under the table. Check your cancellations.
 
Do you think it's fair for the customer to have their policy switched so the car salesman can get an extra $50, While you're at home watching your wheel of fortune reruns? Oh, you're open 24/7? Like I say, dumas, check your cancellations. I've been doing this 25 years. I'm not going out easy.
 
I don't like it & hate Geico, but likely no law was broken.

How is this really different than someone selling leads? Whoever is getting names interested for quotes is then selling theead to Geico.

A website or TV as or door knocking or postcard gets someone interested & their name is then sold to an insurance carrier or producer.

Likely no limit on the amount a lead can be sold for if not contingent on purchase. If contingent on purchase, person would likely would need to be licensed & could get paid based on sales or comm
 
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