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...effectively. We will cover what wholesalers are, why and how to utilize them, and criteria to select those wholesalers with whom you choose to do busines... than likely your involvement with wholesalers will increase if you want to co...

...>Privately owned retail agents, wholesalers, and MGAs can benefit by creating ...lationships on doing business with wholesalers and MGAs wanted to structure an...

...actical deployment. For agents, wholesalers, managing general agents (MGAs), a... Valuable for MGAs and wholesalers, but depends on structured data...

... programs are created (for HVAC Wholesalers, as an example) through the carefu...aurant supply operations, and meat wholesalers. We prefer the mother-child me...

... run, this should be beneficial because it eliminates the "requirement" of sending out cancellation notices. The new form reinforces the need for agents using certs to follow these "best practices:" Best Practices to consider: Have a written procedure for the handling/issuance of certs. This should address all pertinent issues, including how to handle requests for adding additional insureds when the policy doesn't provide this coverage. Consider identifying a specific number of staff who can handle this responsibility, and make sure they receive the necessary training. Audit completed certificates periodically to ensure that they are done in accordance with established agency procedures. If you're issuing certificates on behalf of E&S carriers with which you have placed business, understand that unless you have an E&S license and are acting as the wholesaler, you are technically not the agent. Get approval from your E&S wholesaler to issue these. Many agents issue a "draft" and send it to the wholesaler for approval. This is acceptable. Issue the certificate from your system. This will ensure that the producer, named insured(s ), carrier, policy number(s ), policy dates, etc., are correct. If you still produce certificates manually, as your software is updated to the new ACORD 25 form, take advantage of technology – it's a great time saver that will help reduce (but not eliminate) the potential for mistakes. Use the Additional Insured column as much as possible to help tie additional insureds into the right coverage. Don't issue a certificate with additional coverages notes ...

... dealing with the E&S market, take these E&O precautions. Before you go to the Surplus Lines market, be sure to educate your staff on the uniqueness of this marketplace: Many E&SL carriers require their own apps. Don't get caught in a situation where you need to bind coverage and the carrier wont do so until they have their app. You'll need to complete affidavits to show that the standard market won't write your risk Since Surplus Lines is free of rate and form in most states, the forms might not be familiar. Make it a standard practice in your agency to review new policies and to compare them with the old forms. If you can't get comparable coverage, notify the client. Be sure to request a copy of the policy form from the wholesaler. Check the financial rating of the Surplus Lines carrier. If you're not sure, ask the wholesaler. Remember: there's no Guaranty Fund with Surplus Lines carriers. Exercise extreme caution! Here's an E&O claim that illustrates these issues: The claim against the agency was for failure to provide a client tavern owner with adequate Liability coverage. There was a fatal shooting at the tavern when a 14-year-old girl attempted an armed robbery. An intoxicated patron tried to disarm the girl, but was killed in the struggle. The patron's estate sued the tavern for failure to maintain safe premises. The agent submitted the lawsuit to the General Liability carrier, who denied the claim on the basis of an Assault and Battery exclusion. The agent gave notice to the Liquor Liability carrier, who also denied ...

...   L. 5 -- Auto Parts Wholesalers   M. 5 -- Air Conditioning & Refrigerator Wholesalers   N. 10 -- Fast Food Busin...

... state requires certificates to be filed and approved just like policy forms. For more information, check out our article ' Additional Insureds and Certificates. Courts have generally held that a certificate of insurance doesn't grant any contractual rights to the certificate holder. In United States Pipe & Foundry Co. v. United States Fidelity & Guaranty Co., 505 F.2d 88 (5th Cir. 1974), the court ruled that the certificate didn't grant contractual rights since there had been no exchange of consideration as required to effect a valid, enforceable contract. One wonders, though, if at some point a certificate holder might allege that the consideration provided was the granting, for example, of a construction contract in exchange for the certificate and assurance of coverage, cancellation notice, etc. In Lezak & Levy Wholesale Meats, Inc. v. Illinois Employees Insurance Co., 460 N.E.2d 475 (Ill. Ct. App. 1984), the court refused to permit the coverages implied on the certificate to supercede those actually provided under the insurance contract based on the fact that the certificate, according to its clear wording, was not part of the policy. The court made a similar ruling in Pekin Insurance Co. v. American Country Insurance Co., 572 N.E.2d 1112 (Ill. Ct. App. 1991) . However, where there's an implication that the certificate might be a part of the policy or controlling it, several courts have ruled in favor of the certificate holder. Such cases include White Motors Corp. v. Northland Ins. Co., 315 F. Supp. ...

...lling. They are brokers or wholesalers. They might have represented a man...have to provide training. Brokers/Wholesalers Brokers/wholesalers should have extensive product k...

... accounts earning less than $1 ,000 in annual commission." Using this approach means setting up a department that's destined to fail. Producers will gladly give up all their problem accounts that meet the commission requirement — the client is difficult to deal with, the account involves too many transactions, it's hard to place with markets, etc. This also prevents the department from accepting larger accounts that fit the small-accounts model. Efficiency is even more important with small accounts than with larger ones. Only those that can be sold and serviced quickly and easily should be in a small-accounts unit. Many of the accounts might be able to be sold over the phone, for instance. All of them should be able to be placed with standard markets. An agency should never have to go through a wholesaler for small accounts; doing so would only further reduce the already small commission paid on these accounts and eat into profits. If an account can't be set up for direct bill, it shouldn't be in this unit. An agency doesn't receive enough revenue on these accounts to warrant the amount of work involved in handling the billing. The "right accounts" also should be placed with the right number of carriers. We've found that many agencies we consult with have as many as 10 markets for Small Commercial accounts. This is too many; two to four is an appropriate number. The coverages are often similar enough that it's inefficient to have to work through the product and Web site differences among many carriers every time a new account comes in. The benchmark commission size varies by agency. ...