PERSONAL INSURANCE
ENDORSEMENT PROCEDURE
The ultimate goal for an automated agency would be to have endorsements processed as follows:
- customer calls with a change
- the CSR/Marketer enters the change into the computer and updates the customer's file
- the change is transmitted to the company
- the paper endorsement is issued and sent to the customer
This procedure, however, dictates that there be 'Single Entry Interface' with all the companies that an agent transacts business. This does not appear to be an option in the foreseeable future.
The procedure for processing personal lines endorsements is realistic, in that it incorporates the reality of the need for paper or electronic mail to be used with most companies.
Finally, any time there is a positive contact with a customer, there should be an attempt made by the CSR/Marketer to add additional coverages or policies. This would be accomplished by the CSR/Marketer closing the conversation with the customer in the following way:
'By the way, I notice that we don't write your Auto insurance. Did you know that we are able to provide the best service and pricing to the customers when we furnish all of their insurance protection. We really want to be your total insurance agent and provide for all of your insurance needs?'
or
'By the way, I notice that you don't have an Umbrella Liability policy. In view of the large court settlements being awarded by our judicial system these days, most of our customers in your economic position are obtaining this worthwhile protection. Would you be interested in hearing more about this valuable coverage?.
Training the CSR/Marketer in these procedures and techniques will make your agency more professional and more profitable, while also providing another line of defense from Errors and Omission losses.
1. CSR/Marketer receives request from producer or customer to change coverages.
2. CSR/Marketer retrieves the customer's electronic file and enters changes.
3. CSR/Marketer uses 'By the Way' to solicit other coverages or policies from the customer.
4. If customer is interested in pursuing these additions, include with the other change that the CSR/Marketer is making or provide a quotation. (See Quotation Procedure)
5. CSR/Marketer updates customer file and notes in the customer's note pad exactly what was accomplished by this change.
6. CSR/Marketer prints ACORD change form and mails one copy to company.
7. CSR/Marketer sets up a realistic follow up for receiving endorsement from the company.
8. CSR/Marketer sends necessary binders and certificates to additional insureds with Cover Letter (BINDLP.PL).
9. When endorsement is received CSR/Marketer reviews endorsement for accuracy. (If errors exist, return to step 6)
10. If endorsement is correct CSR/Marketer:
- Prepares invoice (If Agency Bill)
- Removes suspense dates
- Further updates customer's electronic file (If necessary)
- Sends agency copy of endorsement to transactional filing
- Sends copy of endorsement to customer with Cover Letter (If Agency Bill).
Dear :
Enclosed is the endorsement for policy number _____ making the following changes to your policy.
This endorsement should be filed with your policy. I have also enclosed an invoice for the premium difference which is payable upon receipt.
If you have any questions please contact me.
Sincerely,
Enclosure