Here's a letter I received recently:
Dear Dave:
I am the manager of a four-person Life/Benefits department of a P/C agency. The agency is set up with profit centers such as Personal Lines, Commercial Lines, Surety, and Life/Benefits. Each profit center shares in the common overhead of the agency office supplies, salaries, etc.
I have no problem having my department pay for what it uses.

Confusion over agency bill vs. direct bill options has caused an E&O claim or two. Curtis Pearsall illustrates the consequences of this confusion with an example.

AGENCY EMPLOYMENT AGREEMENT THIS AGREEMENT made this day of , 20 by and between [AGENCY PRINCIPAL NAME] d/b/a [NAME OF INSURANCE AGENCY], having a principal place of business at [BUSINESS ADDRE...

AUDIT STATEMENT - INVOICE Dear (Customer Name), RE: Policy Audit Period We have checked this final audit for your (Type of Policy) as to rate and computation. However, the payroll and other fi...

BINDER BILLING - EXISTING ACCOUNT Dear (Customer Name): RE: While your policy is in the process of being issued, please accept this (Binder Number) as evidence of coverage. As soon as the polic...

BINDER BILLING - NEW ACCOUNT Dear (Customer Name): RE: While your policy is in the process of being issued, please accept this (Binder Number) as evidence of coverage. As soon as the policy is ...

CANCELLATION - INVOICE Dear (Customer Name), RE: The process of cancellation of the above policy is now complete, and enclosed is our invoice for the additional premium due at this time. Thank ...

CLAIM SETTLEMENT Dear (Customer Name): RE: Date of Loss Type of loss Company We are pleased to enclosed (Draft Number), in payment of your recent claim. We regret that you w...

Agents who’ve experienced a hard market know that claims are often scrutinized much more closely than they are in a soft market. Unfortunately, circumstances sometimes lead to the denial of claims that are covered regardless of market conditions. This document by the Virtual University faculty provides an example of what you might see more of in the months to come.

COLLECTION LETTER - THREATENING LEGAL ACTION Dear (Customer Name), RE: BALANCE DUE It is urgent that this unpaid balance be paid by ( ) to close this account. We have verified this balance and ...