Group Auto and Home

[Karweik]

I recently had a person from a non-profit organization contact me about Group Auto and home... It is something we offer and it gives great discount. The org. had insurance through an out of state agency that decided to stop writing insurance in Wisconsin.

The lady sent me a copy of the contract they currently use with their old agency and I noticed some things in it that seem wrong.

1. for them to sign I must pay for an ad in two of their magazines
2. I must pay and attend one of their vendor fairs.
3. I must pay them 2% of any premiums I sign from their members

The first two I don't have a problem with, but isnt number 3 rebating? If it is am I suppose to report this?

I hope this makes sense, thanks for the help!

 

[Josh]

Sounds like a great deal.... for them.

I wonder why the out of state agency would stop writing in Wisconsin if they had such a lucrative contract.

 

[wow314]

Liberty mutual pays organizations 2% and renewals.

 

[Karweik]

So its not rebating for them to say we will go with you if you pay us 2%? Im going to talk to my manager about this I just want to know what other people think.

 

[Josh]

So its not rebating for them to say we will go with you if you pay us 2%? Im going to talk to my manager about this I just want to know what other people think.

I'd definitely talk to your manager and/or compliance about this. Some carriers are setup to handle this type of a deal, others not so much.

 

[CaptiveGuy]

I think Liberty Mutual, Travelers, and Kemper all have these programs. Don't know how they get around the "rebating" part but I'm sure their legal departments have it taken care of.